Eligibility Requirements (continued)
In most cases, the eligible contributions will be listed on the taxpayer's Form W-2. It is important to input the information into the software exactly as it appears on Form W-2. Review the taxpayer's Form W-2 for the following:
Contributions to traditional or Roth IRAs may not appear on any tax document. In the course of the interview with the taxpayer, be sure to ask if the taxpayer made a contribution to an IRA or other retirement account.
Click here for the Form W-2 Instructions, which include a complete list of Box 12 codes.
Some employers allow employees to make after-tax contributions to a Roth plan. These after-tax contributions are listed on Form W-2, box 12 with code AA for a Roth 401(k) or BB for a Roth 403(b).
If Form W-2 is entered into the software correctly and completely, the program will carry the appropriate information to Form 8880. Go to the Volunteer Resource Guide, Income tab, Form W-2 Instructions for software entries.
If the taxpayer contributed to a Roth or a traditional IRA, whether it is deductible or not, you should link to the IRA deduction worksheet and enter the information. The software will carry the appropriate contributions to Form 8880. Go to the Volunteer Resource Guide, Adjustments tab, Form 1040 - Adjustments to Income for software entries.