I'm confused over what to put in. I have a W2 job and I'm also self employed (filing a schedule C). In addition, because of Covid I collected unemployment in 2020. I contributed the max $6k to my roth IRA. Altogether, my adjusted gross income was just over the limit of $32500 specified on form 8880. Without the unemployment income, I would be well under this limit. Also, just based on self employment income, I'd also be well under the limit.
However, I'm comparing Turbo tax to another popular online tax software that asks for my net self employed income when filling out the retirement contribution portion. At no stage does it ask for adjusted gross. So which one is it for my situation?
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The credit amount is based on line 11 of Form 1040, adjusted gross income (AGI). In your case AGI includes your W-2, net earnings from self-employment and unemployment minus a deduction for half your self-employment tax.
TurboTax calculates AGI and Form 8880 for you.
The Retirement Savings Contributions Credit (Saver’s Credit) a special tax break to low- and moderate-income taxpayers who are saving for retirement. 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.
Learn more at What Is the Savers Credit?
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