Question

Saver's Credit

Forum|Forum|5 years ago
May 7, 2021
2 replies
0 views

I am self-employed and my AGI is under 30K, single status and just contribute first time for 2020 Roth IRA . I should qualify for 10% which is $200 tax credit . However, TT did get all my correct info, but showing $0 credit . How to fix it ? TIA

TurboTax Home & Biz Windows

Hal_Al

Employee

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. See line 2 on form 8880.

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

TT will complete form 8880, even if you don't qualify. Reviewing the completed form 8880 usually explains why you didn't get the credit.

A

AmeliesUncle

Common reasons:

Did you withdraw from any retirement funds in the last 3 years? If so, that may disqualify you.

Did you indicate that you are NOT a full-time student (go through the error-check/review)? Until you answer that, the program won't give you the credit.

A

abced321Author

after I answered that , it gave me $200, but substract away from my PEV credit . My total PEV + Saver credit is only $700 instead of $4500 + 200. I am 1st year/time Roth IRA for 2020 though .

A

AmeliesUncle

If you remove the Roth IRA contribution, does it show your PEV credit as $900? If so, it seems like you don't have enough income tax for those non-refundable credits to offset.