Question

Can I file for free if I just have one W2 but I have a 401k?

Forum|Forum|2 years ago
February 3, 2024
2 replies
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I have a 401k through my job. Can I still file for free of does the 401k make my filing not “simple”?

Employee

When you use the Free Edition and have a 401k on your W-2, the software might try to give you the saver credit and make you upgrade. If that credit is so small you do not want to pay for the upgrade, you can tell the software that you are a student and you will be disqualified for that credit and avoid the upgrade.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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FjordamyAuthor

But I’m NOT a student, and I kinda don’t want to lie to the IRS.

DoninGA

Employee

Contributions to your employer provided tax deferred retirement account 401(k) are entered on your W-2 in box 12 with a code of D. They are not entered anywhere else on your tax return.

Based on your Adjusted Gross Income and your filing status you may be eligible for the Credit for Qualified Retirement Savings Contributions (Saver's Credit). If you are eligible you cannot use the Free online edition since the Free edition does not support this credit. You would have to upgrade to the Deluxe online edition for the credit.

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FjordamyAuthor

Yeah, I’ve been there before…. Paid $140 to upgrade (it would not tell me how much, but only said basically “Oooooh we can get you a much bigger refund!”) and only got $2 more. That’s why I quit using turbo tax, I’d just heard they’d changed some things and thought I’d check.

DoninGA

Employee

If you are eligible for the saver's credit and if you do not want the credit, you can go back to My Info and change your occupation to Student to eliminate the credit. The occupation is only used for statistical analysis, nothing else.