Form 8880 and Schedule C

[Bjorn]

My tax software, Ultra Tax, does not default to allowing a self employed person who does a SEP to claim the retirement savers credit. It can be done as an override.

There seems to be debate if this is a deferral or employer. Does anybody have clarity for a modest income self employed hair stylist who did a sep if she can get the form 8880 credit?

Mahalo

Bjorn

[ChEAr$]

My tax software, Ultra Tax, does not default to allowing a self employed person who does a SEP to claim the retirement savers credit. It can be done as an override.

There seems to be debate if this is a deferral or employer. Does anybody have clarity for a modest income self employed hair stylist who did a sep if she can get the form 8880 credit?

Mahalo

Bjorn

I think your software is correct. The form 8880 is for a taxpayer who himself makes
the contributions to an IRA, and not for the employer which contributes to said IRA
FOR the employee.
Remember, that in case of schedule c, employee is also the employer.

Thus, no savings credit on 8880.

Otherwise I might be using it for contributions my employer (S corp) makes for me.

[Lion]

Ira

If her income's low enough to qualify for the Saver's Credit, then suggest she contribute to a Traditional IRA or Roth IRA this year, with or without a SEP contribution.