Retirement Savings Contributions Credit
0:19 Contributions Credit – What’s New & Introduction
8:44 Contributions Credit – Can You Claim The Credit?
Publication 590-A Contributions to Individual Retirement Arrangements (IRAs)
https://www.irs.gov/pub/irs-pdf/p590a.pdf
Can you claim the credit? If you make eligible contribu-tions to a qualified retirement plan, an eligible deferred compensation plan, or an IRA, you can claim the credit if all of the following apply.
1.
You were born before January 2, 2001.
2.
You aren’t a full-time student (explained later).
3.
No one else, such as your parent(s), claims an ex-emption for you on their tax return.
4.
Your adjusted gross income (defined below) isn’t more than:
a.
$63,000 if your filing status is married filing jointly;
b.
$47,250 if your filing status is head of household; or
c.
$31,500 if your filing status is single, married filing separately, or qualifying widow(er).
Full-time student. You are a full-time student if, dur-ing some part of each of 5 calendar months (not necessa-rily consecutive) during the calendar year, you are either:
•
A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance; or
•
A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government.
You are a full-time student if you are enrolled for the num-ber of hours or courses the school considers to be full time.
Adjusted gross income. This is generally the amount on line 7 of your 2018 Form 1040; or line 35 of your 2018 Form 1040NR. However, you must add to that amount any exclusion or deduction claimed for the year for:
•
Foreign earned income,
•
Foreign housing costs,
•
Income for bona fide residents of American Samoa, and
•
Income from Puerto Rico.
Eligible contributions. These include:
1.
Contributions to a traditional or Roth IRA;
2.
Salary reduction contributions (elective deferrals, in-cluding amounts designated as after-tax Roth contri-butions) to:
a.
A 401(k) plan (including a SIMPLE 401(k)),
b.
A section 403(b) annuity,
c.
An eligible deferred compensation plan of a state or local government (a governmental 457 plan),
d.
A SIMPLE IRA plan, or
e.
A salary reduction SEP; and
3.
Contributions to a section 501(c)(18) plan.They also include voluntary after-tax employee contribu-tions to a tax-qualified retiremen