I took a distribution in 2022 of my employer sponsored retirement account. Turbo Tax is giving me a retirement savings credit. This seems wrong?

Forum|Forum|2 years ago
January 22, 2024
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TurboTax Free Edition Online

Best answer by DoninGA

No as I did not have a W2. I had to take early retirement/social security and thus only have a SSA 1099.

See if you can delete the Form 8880

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Delete a form

DoninGA

Employee

You may be eligible based on your filing status and AGI.

Go to this IRS website for the 2023 Retirement Savings Credit information - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit

gcorbett100Author

Thank you for your quick answer! I have read the IRS guidelines. I am reluctant to take this credit because I took the balance of my retirement in 2022 and paid all taxes due and owed. Just seems odd that taking a full distribution in 2022 would result in a credit. I made no contribution to my retirement account after the payout. I went to form 8880 and filled it out and I am still not seeing how this applies. I have always had a downloaded version of Turbo Tax Deluxe and could see the forms behind the numbers (schedule 3, form 8880, etc) but this year am trying the free version and do not see the ability to look at schedules/forms.