Retirement Savings Contributions Credit Form 8880

Bronwyn13
Bronwyn13 Member Posts: 1 Newcomer
in Credits/Deductions

I used Free Tax USA early this year for 2022 return. I'm just learning about the Retirement Savings Contributions Credit Form 8880 (it's been in place since 2002). I would have qualified for a $400 credit but I don't see that Free Tax USA software included that. Is there a way to contact Free Tax USA about this? Here is a link to the IRS about it. its a simple and basic credit, not complex so it should be a standard form. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 258
    edited December 2023

    Hi Bronwyn13,

    The Retirement Contribution Credit is based on a couple of things.

    1. Income
    2. Filing Status

    The credit is then calculated at a percentage of your contribution based on those two things. For example (for 2022), you cannot take a credit (0% of your contribution) if your filing status and income is over these amounts. Married Filing Joint - $68,000, Head of House - $51,000, Single - $34,000

    Take a look at your Adjusted Gross Income (AGI) and your filing status. Was it over those amounts? If so, that would explain why your credit was $0.

    Feel free to contact customer support by signing into your FreeTaxUSA account, if you would like some specifics about your 2022 return.

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  • JMSSGV
    JMSSGV Member Posts: 74 Level 5

    Most tax software automatically calculates any retirement savings credit based on the entries you made. If you entered your 401(k) or other deferred compensation with the correct code on your W-2, or deducted an IRA contribution, that information should carry over to the RSC form. However, as was pointed out above, you may not have qualified for the credit for other reasons. Was a Form 8880 generated when you printed out your return?

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