It says a credit will be given if I contribute a regular IRA or a Roth IRA? I know that there is no deduction for Roth but a credit is given If I contribute.
Martha
What is Form 8880-Qualified Retirement Contributions?
It says a credit will be given if I contribute a regular IRA or a Roth IRA? I know that there is no deduction for Roth but a credit is given If I contribute.
Martha
{ 3 comments… read them below or add one }
Megan
If you meet all of the qualifications to claim the Credit, you can include on the form 8880 the Amount contributed to a Roth IRA
See the instructions and qualifications to Form 8880
Sylvia
‘Use Form 8880 to figure the amount, if any, of your
retirement savings contributions credit.’
‘This credit is claimed for contributions to a traditional IRA, Roth IRA, 401K etc. This credit is in addition to any IRA
deduction claimed on Form 1040, line 32; Form
1040A, line 17; or Form 1040NR, line 31.’
For a down loadable copy of the form and instructions:
Gene
The Savers Credit can reduce taxes owed. If you are filing Single with income under $25,000, or Head of Household with income under $37,500, or Married Filing Jointly with income under $50,000, you may qualify for the credit.
The credit applies to the first $2,000 of retirement contributions per taxpayer and ranges from 10% to 50% of the contribution.
A few other restrictions apply as described in Form 8880.
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