I have a self employed individual that should qualify for the Retirement Savings Contribution Credit if he contributes to his SEP IRA. His income is low enough, he is over 18, not a dependent or a FT student. Why does Lacerte not calculate the credit automatically?
Does he report any 1099-R withdrawals during the tax year?
Were there any 1099R withdrawals over the last 3 years? Is there a wife in the picture who withdrew in the last 3 years? It seems to me I had a couple once where no matter how much the wife put in for her own IRA, the husband, disabled, had been taking out of his pension and the money from 3 years of his, wiped out her one year's contribution for the sake of this credit.
In PS, the SEP-IRA contribution by a self-employed is IGNORED by the 8880, yet the instructions say it is qualified. In fact, all the plans are ignored by the software except the 401k for self-employed and the W2 info.
Is this a programming error?
A regular SEP-IRA contribution does not qualify. The 8880 is for elective contributions. The only SEP that has elective contributions is a SAR-SEP.
Yes it does! Thank you scheunemancpa! Would it have hurt if they just said SAR-SEP in the instructions?
