Form 8880 Not Generating Credit Due to Pension Distributions in Lacerte

This article 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 Screen 13.1, 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 Screen 13.1, Pensions, IRA Distributions.
2. Scroll to the section titled Other Information.
3. Check the box Distribution not from IRA or elective deferral plan (8880).