Where do I enter my Thrift Savings Plan (TSP) contribution with the code AA? Am I entitled to the Retirement Savings Credit with it?

marky612 — Tue, 04 Jun 2019 19:57:46 GMT

I am filing my taxes and I have both codes D and AA in Blk 12 entered into the W-2 section, I know the D is accounted for with my wages, but is there somewhere I need to account for the AA code, and is it eligible for the Retirement Savings Credit?

Enter W-2 box 12 amounts only in box 12 of TurboTax's W-2...

dmertz — Tue, 04 Jun 2019 19:57:47 GMT

Enter W-2 box 12 amounts only in box 12 of TurboTax's W-2 form.

Yes. TSP contributions qualify for the Saver's Credit as...

MichaelDC — Tue, 04 Jun 2019 19:57:49 GMT

Yes. TSP contributions qualify for the Saver's Credit as long as the other requirements are met.

Most of the time taxpayers don't qualify for the Saver's Credit it is because of income limitations (read: They make too much money).

To claim a Saver's Credit, you must be age 18 or older and you cannot be a full-time student or be claimed as a dependent on someone else's tax return. Your retirement contribution must have been made during the tax year for which you are filing your return. And you must meet the income requirements.

In 2017, the maximum adjusted gross income for Saver's Credit eligibility is $62,000 for a married couple filing jointly, $46,500 for a head of household, and $31,000 for all other taxpayers. The maximum credit you can claim phases out as your income increases.

Depending on your adjusted gross income and tax filing status, you can claim the credit for 50%, 20% or 10% of the first $2,000 you contribute during the year to a retirement account. Therefore, the maximum credit amounts that can be claimed are $1,000, $400 or $200.

The biggest credit amount a married couple filing jointly can claim together is $2,000. But if you and/or your spouse took a taxable distribution from your retirement account during the two years prior to the due date for filing your return (including extensions), that distribution reduces the size of the Savers Credit available to you.

The Saver's Credit is a 'non-refundable' credit. That means this credit can reduce the tax you owe to zero, but it can't provide you with a tax refund.

TurboTax will fill in all the right forms for you.

topic Where do I enter my Thrift Savings Plan (TSP) contribution with the code AA? Am I entitled to the Retirement Savings Credit with it? in Retirement tax questions

Where do I enter my Thrift Savings Plan (TSP) contribution with the code AA? Am I entitled to the Retirement Savings Credit with it?

Enter W-2 box 12 amounts only in box 12 of TurboTax's W-2...

Yes. TSP contributions qualify for the Saver's Credit as...