401k tax credit for low to moderate income individuals & families
Does Esplanner or ESP basic factor in the 401k tax credit for low to moderate income households if the user adds details of their 401k contributions. For example, if a single individual is making $19,000 a year and indicates that she contribute 6% of salary, with an employer contribution of 50% of employee contributions, would the tax calculations reflect the 401k credit for that individual, and resulting phase out for families that exceed the limits to qualify for the credit?
Kelvin
RSS
My recollection is that we calculate the appropriate credit for your personal contribution. The phase out is probably handled but I would have to go and look at the code in detail for that. We start the tax and other financial upgrades in December so I'll definitely check then but it may be a while before I crack the tax books and forms otherwise.
Do you happen to have a form/schedule/worksheet number where this is supposed to be calculated. That would help me enormously.
Best,
Dick Munroe
Dick, IRS form 8880 shows the credit for Qualified Retirement Savings Contributions (aka 401k savings credit for low to moderate households.
I hope this helps.
Kelvin
Yes, we do calculate the details of form 8880 and we do deal with income limits, etc. when we do so.
Best,
Dick Munroe
As usual, I continue to be impressed.
Kelvin