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LauraJW3
New Member

401K Contribution

I know that I enter my 401K Contributions when I am entering my W2 but do I also enter those amounts again under the deductions and credit fields?

8 Replies
PattiF
Employee Tax Expert

401K Contribution

No, you don't need to enter them again. The information in Box 12 is coded so that the program knows that D is Contributions to your 401(k) plan. This information will be used to determine your eligibility for the Retirement Savings Contributions Credit.

Tucker14
Level 2

401K Contribution

Last year I received a credit for my 401K contributions. This year it did not give a credit when I filed.

Turbo Tax had the info from box 12, so why didn't I get a credit ?

DawnC
Employee Tax Expert

401K Contribution

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

To claim a Savers Credit, you must:

  • Be age 18 or older.
  • Not be a full-time student.
  • Not be claimed as a dependent on someone else's tax return.
  • Have made your retirement contribution during the tax year for which you are filing your return.
  • Meet the income requirements.

In 2020, the maximum adjusted gross income for Savers Credit eligibility is:

  • $65,000 for a married couple filing jointly,
  • $48,750 for a head of household, and
  • $32,500 for all other taxpayers.

The maximum credit you can claim phases out as your income increases.   To see the calculations, view Form 8880 "Credit for Qualified Retirement Savings Contributions."  @Tucker14

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Tucker14
Level 2

401K Contribution

Is there a way to go back after I have already filed and revise this? I do believe I should be getting a credit for my contributions. Or is it possible that the IRS or Turbo Tax will catch it before my taxes are approved and refund deposited ?

Tucker14
Level 2

401K Contribution

Is there a way to go back after I have already filed and revise this? I do believe I should be getting a credit for my contributions. I meet all the requirements..  Is it possible that the IRS or Turbo Tax will catch it and make the adjustment before my tax return is  approved and refund deposited ?

DawnC
Employee Tax Expert

401K Contribution

Neither TurboTax or the IRS will add the credit, so if you did not get the credit and are qualified for it, you would need to amend the return after it has been processed.  You have a couple of years to do that, so the is plenty of time.   If you had not already filed, you could review it and make changes, but since you have filed already, you have to wait.   

 

However, if the contributions were on your W-2 and you enter the Box D code in Box 12 in TurboTax, the credit would have been automatically applied if you qualified.  Now if you did not put the code D in, you will want to amend.

 

Did you take any distributions that you received a 1099-R for?  And 1 other thing to check - Look at Line 24 of your Form 1040 - is their an amount?  @Tucker14

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Hal_Al
Level 15

401K Contribution

The Retirement Savings Contributions Credit (“Saver’s credit”) is very limited and is for low income people. See the table on  Form 8880: https://www.irs.gov/pub/irs-pdf/f8880.pdf

You, or your spouse, must  not have taken money out of a retirement account (including drawing a pension) in the last three years.

It is not a refundable credit. You must have a tax liability to take the credit against.

TurboTax (TT) will check this automatically when it sees you made a qualified contribution. If you want to verify that happened;  enter in TT at:

Federal Taxes Tab 

Deductions & Credits

-Scroll down to:

-Retirement and Investment

   - Retirement Savings Contribution Credit

 

Review form 8880, that TT completes. It will usually show why you didn't get the credit.

Tucker14
Level 2

401K Contribution

I do not remember putting in the code 'D"  but it is on my W-2. in box 12a. and an X  in 13 under Retirement plan. yes there is an amount in 24

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