Question

Retirement Savings

Forum|Forum|4 years ago
March 12, 2022
1 reply
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- In 2021, my daughter contributed $1,731 to my companies valid 401-K plan verified in W2 Box 12a with code D.

- 2021 AGI was $30,406

- In Easy Step, a credit of $173 was calculated for Retirement Savings Contributions Credit

- Turbo Tax recorded $173 on Schedule 3 Line 8

- Form 8880 showed $173 to be recorded on Line 20 1040

- But Line 20 on 2021 1040 does not include $173

Why was $173 not entered in 1040 Line 20 when 8880 and Schedule 3 showed $173?

R

RaifH

If the credit is appearing on Schedule 3, it should certainly feed through to Line 20 of Form 1040, as you say. Is she receiving other credits on Schedule 3 and could the missing money come from one of these other credits?

If she is not receiving any other nonrefundable credits, you may want to try to delete the retirement savings contribution credit and then add it back in. There are no eligibility rules that would cause it to be reported on Form 8880 and Schedule 3 but not carry through to Form 1040.