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.
2007-03-28 12:10:32 · 3 answers · asked by JOE D 1 in Business & Finance ➔ Taxes ➔ United States
'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:
http://www.irs.gov/pub/irs-pdf/f8880.pdf
2007-03-28 12:37:16 · answer #1 · answered by Terry J 4 · 1⤊ 0⤋
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
http://www.irs.gov/pub/irs-pdf/f8880.pdf
2007-03-28 12:24:31 · answer #2 · answered by Anonymous · 1⤊ 0⤋
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.
2007-03-28 18:33:18 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋