Saver's credit

[10Kosmo]

I rolled over from 403B to my IRA in 2019. I contributed to IRA in 2020 and would like to get the Saver's Credit. But Turbo Tax is not calculating this credit. Please HELP!!!

[MinhT1]

Your new contribution to your IRA may be eligible for the Savers' credit. You have to enter your contribution in TurboTax.

In TurboTax, you can enter IRA contributions by following these steps:

• In TurboTax, open your tax return
• Click on Federal in the left-hand column, then on Deductions & Credits on top of the screen
• Scroll down to All Tax breaks, locate the section Retirement and Investments and click on Show more
• Click Start next to Traditional and Roth IRA Contributions.

[10Kosmo]

@MinhT1 

I entered 2020 contributed amount correctly. But the problem is in the Retirement Savings Contribution Credit has -0- credit. The issue may be because Turbo Tax has pulled the 2019 rolled over amount into IRA as 2019 qualified plan distribution. Perhaps, I should just delete this amount?

[MinhT1]

Please check that you meet all the requirements and are not disqualified by income.

Please read this TurboTax article for more information.

[10Kosmo]

@MinhT1 

I meet the income requirement as well. 

Adjusted Gross Income is $13,687 and Taxable Income is $1,287.
Turbo Tax has calculated my EITC $258
Yet Turbo Tax says, "we have run the numbers, and unfortunately currently, the amount of tax eliminates benefits from the nonrefundable Retirement Savings Contribution Credit" WHY?

[DawnC]

If the 2019 distribution was rolled over, it should not be listed as a distribution in the Saver's credit calculation.   But since you say that TurboTax included the amount, meaning you did not enter it, it makes me wonder if the distribution was properly reported in 2019.   You should check that because it sounds like the 2019 distribution was treated as a taxable distribution and not a roll-over.   If you did not roll over the full amount, the taxable portion you kept would reduce the amount of your Saver's Credit. 

However, it is possible that even if you remove the distribution amount you see there that the Saver's credit will still be zero.  It’s a non-refundable tax credit which means it can’t reduce the amount of tax owed to less than zero.   You could have other tax credits that already reduce your tax liability to zero.    Look on Line 24 of your Form 1040 to see what your total tax is.