topic I am having trouble taking advantage of the "Saver's Credit" for contributing to a qualified retirement savings account. Is there a known technical issue related to this? in Retirement tax questions

I am having trouble taking advantage of the "Saver's Credit" for contributing to a qualified retirement savings account. Is there a known technical issue related to this?

mayflower_72 — Sun, 14 Mar 2021 23:14:05 GMT

A competitor's website lets me take advantage of the "Saver's Credit" because I met the requirements. Are others having this issue?

Re: I am having trouble taking advantage of the "Saver's Credit" for contributing to a qualified retirement savings account. Is there a known technical issue related to this?

SweetieJean — Mon, 15 Mar 2021 01:35:05 GMT

Did you also take any money out of a retirement plan? Your eligible contributions may be reduced by any recent (2018, 2019, 2020, or 2021 prior to 4/15) distributions you received from a retirement plan or IRA, or from an ABLE account. Furthermore, Rollover contributions do not qualify for the credit.

Re: I am having trouble taking advantage of the "Saver's Credit" for contributing to a qualified retirement savings account. Is there a known technical issue related to this?

mayflower_72 — Mon, 15 Mar 2021 03:12:54 GMT

Hi!

No I didn’t take any money out of my plan, and upon double checking the requirements for this credit, I meet all the criteria. It seems as though there’s a technical glitch in the software because it’s not recognizing info that I inputted from my W-2.

Re: I am having trouble taking advantage of the "Saver's Credit" for contributing to a qualified retirement savings account. Is there a known technical issue related to this?

mesquitebean — Mon, 15 Mar 2021 03:33:50 GMT

It also depends on whether you have any income tax liability for the Savers Credit to reduce. Do you have any income tax liability? The Savers Credit is a non-refundable credit, which means once your income tax liability is already reduced to zero, it's not going to provide any additional; i.e., it cannot reduce the amount of your income tax below zero. Review lines 16-22 of your Federal Form 1040, and Schedules 2 and 3.

To preview your return Form 1040 and Schedules 2-3, here are the steps.

With your return open, go to the left menu column.
Click on TAX TOOLS, then TOOLS.
In the Tools window choose "View Tax Summary."
At the Tax Summary screen go back to the left menu column and click on "Preview My 1040."
You can then view the Form 1040 Worksheet and Schedule 3.