Savers credit

[Ajt116]

Hello,

I was a part-time student (6 credit hours) for 5 months in 2020. I was never a full-time student (12 credit hours or more). My question is, it says for the savers credit you don’t qualify if you are a student, but it states a full-time student, NOT part-time. Would I still be eligible? I’m claiming myself, and contributed to a 401k and Roth IRA. 

[Hal_Al]

Q.  Am I eligible as a part time student?

A. Yes.  In the personal info section, and the education section,  be sure your didn't check the Fulltime student box(s).

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

Part of the interview will be the Full Time Student Question.  

[Ajt116]

Hello,

@Hal_Al thank you for the information! My income is low enough to qualify for the 10% credit for my contributions. I just wanted to confirm that since I was a student, but was not full-time then I would be qualified to get the credit. 

Roth IRA contributions and my 401k contributions to my employer 401k would be the amounts considered for this credit?

thank you!

[Hal_Al]

Q. Roth IRA contributions and my 401k contributions to my employer 401k would be the amounts considered for this credit?

A. Yes.