TT not applying Retirement Savings Contribution Cr...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
sellyourstocks
New Member

TT not applying Retirement Savings Contribution Credit

I'm doing my girlfriend's taxes and Turbo Tax is not applying any credit for the Retirement Savings Contribution Credit.   She meets all the criteria for the credit:  She's not a full time student; she was born before Jan. 1, 2003; no one else can claim her as a dependent; and her AGI as Head of Household was less than $29000.  She contributed $927.67 to her 403(b) account, so based on everything I've read, she should be getting a 50% credit but TT is not giving it.  It shows up as $0.  Anyone know what's going on here?

2 Replies
Hal_Al
Level 15

TT not applying Retirement Savings Contribution Credit

 

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

 

If it's still not giving it to you, review form 8880 for the calculations

sellyourstocks
New Member

TT not applying Retirement Savings Contribution Credit

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

 

I think that answers my questions.  She doesn't have any tax liabilities as she's getting a refund, so that's probably why it's not showing a credit.  Thank you for taking the time to answer my question!!

Dynamic AdsDynamic Ads
v
Privacy Settings