Common questions on Form 8880 Retirement Saving Contribution Credit in ProConnect Tax

• ProConnect Tax will typically generate this credit automatically based on your IRA contribution entries in Input Return ⮕ Income ⮕ Wages, Salaries, Tips, Input Return ⮕ Income ⮕ Pensions, IRAs (1099-R), and Input Return ⮕ Deductions ⮕ Adjustments to Income.
• If your client meets all the conditions for the credit, but the form isn’t generating, make sure that your inputs are marked accurately as Taxpayer or Spouse. Additionally, if the credit is being reduced by a pension distribution on line 4, see Form 8880 Not Generating Credit Due to Pension Distributions below.

How do I prevent Form 8880 from generating?

To suppress the taxpayer’s credit because the taxpayer was claimed as a dependent:

1. Go to Input Return ⮕ General ⮕ Client Information.
2. Scroll down to Taxpayer Info.
3. In Dependency Status, select Taxpayer claimed as a dependent.

To suppress the credit because the taxpayer or spouse was a student (Option 1):

1. Go to Input Return ⮕ General ⮕ Client Information.
2. Scroll down to Taxpayer or Spouse Information.
3. Type "Student" in Occupation.

To suppress the credit because the taxpayer or spouse was a student (Option 2):

1. Go to Input Return ⮕ Credits ⮕ CTC, EIC, Oth Credits.
2. Select the Retirement tab.
3. Enter 1 in 1=student or dependent, 2=not a student [Override].

To suppress the spouse’s credit because the spouse was claimed as a dependent:

1. Go to Input Return ⮕ Credits ⮕ CTC, EIC, Oth Credits.
2. Select the Retirement tab.
3. Enter 1 in 1=student or dependent, 2=not a student [Override].

Form 8880 Not Generating Credit Due to Pension Distributions

This section explains what to do if Form 8880, Credit for Qualified Retirement Savings Contributions, isn't generating a credit due to a current year distribution.

• This can happen if the taxpayer meets all the conditions, but distributions entered on Input Return ⮕ Income ⮕ Pensions, IRA Distributions are included on Form 8880, line 4 and have reduced or eliminated the amount of credit.
• According to the instructions for Form 8880, distributions not from a traditional or Roth IRA, or an elective deferral plan, shouldn't be included.

See Form 8880 instructions for more information.

How to exclude gross distribution, including rollovers, on Form 8880, line 4

1. Go to Input Return ⮕ Income ⮕ Pensions, IRAs (1099-R)
2. Select the Other Information tab.
3. Check the box Distribution not from IRA or elective deferral plan (8880).

Entering Individual Form 8880 Line 4 in ProConnect

To generate Form 8880, line 4:

1. Go to the Credits section and then go to the screen, EIC, Residential Energy, Other Credits.
2. Scroll down to the Retirement Savings Contributions Credit (8880) section.
3. Enter the amount in, Distribution from IRAs and elective deferral plans under the second prior year subsection. (if applicable)
4. Enter the amount in, Distributions from IRAs and elective deferral plans under the first prior year subsection. (if applicable)
5. Enter the amount in, Distributions from qualified plans received after 12/31/YY prior to due date of tax return. (if applicable)The total of these three input fields will flow to Form 8880, line 4.

Note:  The amount entered under the taxpayer column will also show in the spouse's column on Form 8880 and vice-versa, per the form instructions.

To show different amounts for Taxpayer and Spouse because the Taxpayer and Spouse did not file a joint return for the year the distribution was received:

1. Go to the Credits section and then go to the screen, EIC, Residential Energy, Other Credits.
2. Scroll down to the Retirement Savings Contributions Credit (8880) section.
3. Enter the amount in, Distribution from IRAs and elective deferral plans under the second prior year subsection. (if applicable)
4. Check the box, Filing status in [second prior year] other than MFJ.
5. Enter the amount in, Distributions from IRAs and elective deferral plans under the first prior year subsection. (if applicable)
6. Check the box, Filing status in [first prior year] other than MFJ.