A 457 plan is for government employers.
TurboTax is asking so that it handles that entry correctly.
The program is not asking if your employer is a State Government Employer or if your employer is instead a Local Government Employer, it is asking if you work for a government employer (state or local doesn't natter)
So I work for a city government with a 457 retirement plan…when I put yes for state or local government it doesn’t give me the retirement savings credit…when I click no it does give me the credit. Any thoughts on why that is? Everything I’ve found says you have to be a government employee for the 457 to count towards retirement tax credit.
What code(s) is in box 12 of the Form W-2 you received from this employer? Is the "Retirement plan" box checked in Box 13?
If the income wasn't from a W-2, what form are you looking at? Please clarify.
Sorry…12G and yes the retirement box is checked. I clicked yes for state or local government and the retirement savings credit said I didn’t contribute to a retirement account so I didn’t get the retirement savings credit. Then when I went back through w2 info I clicked no on state or local government and the retirement savings credit popped in.
457(b) contributions are eligible for the Retirement Savings Contributions Credit.
TurboTax Online is putting the information in backwards on the screen Is your [company] a state or local government.
This question is not in CD\Download.
The IRS says you can receive credit for elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan.
Thank you so much! I was afraid something like that was happening!
Has this error been corrected by Turbo Tax Online? I tried clicking both yes and no but my refund amount stays the same so unsure if it's filling it out correctly.
Since you get the same answer either way, your income may be too high to qualify based on your filing status. See What is the 2022 Saver's Credit?