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Retirement savings contribution credit

Forum|Forum|6 years ago
February 18, 2020
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Yes I was wondering why I don't qualify for this credit when I meet the criteria that is listed as qualifiers which is you must be over 18, aren't a full time student, contribute to a qualifying account and don't exceed the income limit for your filing status.

Best answer by ColeenD3

There is a line on Form 8880, that is not mentioned. The credit must be reduced by any distribution previously taken.

Form 8880 Line 4

Certain distributions received after 2016 and before the due date (including extensions) of your 2019 tax return. If married filing jointly, include both spouses’ amounts in both columns.

To claim a Savers Credit, you must:

Be age 18 or older.
Not be a full-time student.
Not be claimed as a dependent on someone else's tax return.
Have made your retirement contribution during the tax year for which you are filing your return.
Meet the income requirements

ColeenD3Answer

There is a line on Form 8880, that is not mentioned. The credit must be reduced by any distribution previously taken.

Form 8880 Line 4

Certain distributions received after 2016 and before the due date (including extensions) of your 2019 tax return. If married filing jointly, include both spouses’ amounts in both columns.

To claim a Savers Credit, you must:

Be age 18 or older.
Not be a full-time student.
Not be claimed as a dependent on someone else's tax return.
Have made your retirement contribution during the tax year for which you are filing your return.
Meet the income requirements