how do i claim $500 tax credit for auto enrollment for setting up my solo 401k?

Forum|Forum|1 year ago
March 7, 2025
1 reply
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I am using turbo tax online

MayaD

Eligible small employers use form 8881 to claim the credit for qualified startup costs incurred in establishing or administering an eligible employer plan.

To open that section in TurboTax online:

Open your return
Type Form 8881 in the search box
Select Jump to form 8881.

In order to calculate the credit in TurboTax make sure to enter your pension plan start up cost first.

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bemundiaAuthor

This form does not exist on Turbotax Online, i called in to one of your experts and they could not find it. can you please fix this issue.

PatriciaV

Employee

In TurboTax Online, follow these steps to add Form 8881 to your return.

In the Business profile section, indicate that you have employees.

Under Expenses:

Enter your Employee pension plan contributions and answer all questions including "Yes" to the auto-enrollment question.
Add your Employee pension plan startup costs (under Less Common expenses).

Under Wages & Income:

Scroll down (or Add) to Other Business Situations.
Choose Business Credits >> Pension plans - Startup Costs, Auto-Enrollment…
TurboTax will confirm you are eligible for the Auto-Enrollment Credit, subject to limitations.

To check that Form 8881 is included:

Go to Tax Tools in the left column.
Choose Tools >> Delete a form. This will display all forms in your return.
Do NOT delete any forms.
Once you confirm that Form 8881 is listed, scroll to the bottom and choose "Continue With My Return."

@bemundia

@kzp

[edited 3/18/2025 | 7:30 am PDT]

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