"Peter" <wordorigin[at]yahoo.com> wrote:

- quote -

It says the smaller of line 5 or $2000. Your wife's column
should be zero on line 5 and therefore zero on line 6b.

Don in Colorado

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Rich Carreiro wrote:

- quote -

It sure does.

cheer$,
Harlan Lunsford, EA n LA

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Another Form 8880 question...

Do "involuntary" distributions/payments count (against you)
when figuring the credit?

For example, in 2002 my mother was a municipal worker. She
had money taken out of her check to pay into the city
retirement system. She also contributed $2000 to a Roth
IRA. However, even though she was still working, she was
receiving a (small) pension from her union simply by virtue
of being old enough -- it was essentially an automatic
benefit. So does that receipt of a pension act to reduce
her Form 8880 credit?

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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wordorigin[at]yahoo.com (Peter) wrote:

- quote -

In your wife's column, what is entered on Line 5? If you did
not contribute to an IRA for her, it should be -0-. Zero is
SMALLER than $2,000.

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Peter wrote:

- quote -

Take another look. Line 6 says to enter the smaller of line
5 or 2000.

What the credit depends on is whether or not you and/or your
wife made a contribution to a retirement plan. If she did
not, then it's zero on lines 1,3 and 5.

Cheer$,
Harlan Lunsford, EA n LA

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- quote -

Line 5 for your wife is 0. That is the smaller of $2000 and
0. So, no credit for your wife.

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I file a joint return; my wife does not have a job. Line 6
of Form 8880, Credit for Qualified Retirement Savings
Contribution, says to enter the smaller of line 5 or $2000
"in each column," thus giving us a credit of $400. But
should I really enter $2000 in each column even though my
wife does not have an income? It works great for me if I
should, and that's what the directions say, but I'd like to
make sure first.

Many thanks,
Peter

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