Internal Revenue Service United States Department of the Treasury
Level Basic Intermediate Advanced Military International

Miscellaneous Credits

Retirement Savings Contributions Credit

Eligibility Requirements (continued)

In most cases, the qualifying plan 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:

  • Amounts listed in box 12 and preceded by one of the following codes: D, E, F, G, H, S, AA, or BB
  • For military personnel, there may be an amount in box 14 coded with Q or E

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.

Tip

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).

Tax software hint.

If Form W-2 is entered into the software correctly and completely, the program will calculate the credit. Go to the Volunteer Resource Guide (Tab 2), Form W-2 Instructions for software entries.

Tax software hint.

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. Go to the Volunteer Resource Guide, (Tab 3), Form 1040 - Adjustments to Income for software entries.