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:
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 calculate the credit. Go to the Volunteer Resource Guide (Tab 2), 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. Go to the Volunteer Resource Guide, (Tab 3), Form 1040 - Adjustments to Income for software entries.