I need your help.

I am preparing my taxes with the HR Block TaxCut.

Single income, taxes are being filed jointly.

W2 Box 12 Amount = $1200 (TSP)
Traditional and/or Roth IRA amounts: = $3600 (TSP + Roth IRA accts.)
To calculate Saver's Credit what do you put in "Allowable 2008 self-employment plan contribution"? Is it $5000 (TSP annual contribution cap), is it $1200 (actual TSP contributions), or, can Active Duty Servicemembers actually claim Saver's Credit?

It's stated as "allowable amount"?? Sounds like they're asking for the cap amount you're allowed, not the actual dollar amount you contributed. Odd.
Is there any more to that section or is that it?

I've tried to put $5000 but it inflates your refund automatically to $1500 or so - so I doubt IRS would give that much money without actual IRS contribution. As a matter of fact, I put $0s for both W-2 box 12 and IRA amounts - I was still entitled to that huge refund.

Saver's credit tab is supposed to mirror IRS form 8880...but that form does not define "allowable 2008 self-employment plan contribution"

Are you self employed?

I'm showing that the max credit for married on that Saver's Credit is $2000. The lower the income, the higher the credit rate.

Make sure you're not using the 1040EZ to claim this credit either===just won't work.

Check out Publication 590 for 2008 taxes on the irs.gov site. It goes much more in depth than some of the info I've found.

Consider download one of the free tax programs like TaxAct, Turbo Tax Basic or using an online free tax service. They have easier to understand help on topics like this.

Hello Dave_M.


Last year only my wife had earned income-less than 15,000. My doctor wrote a prescription for hydrotherapy for my back condition. I am also a heart patient and need to exercise. So, I used most of savings I had that was already taxed and built a sunroom with a swim spa in it. Total cost almost 60,000.00. It is definitely a home improvement expense but do you know the rules for what I can deduct on my taxes?

You can not deduct home improvement expenses. They add resale value and your house (up to a point) does no create tax liability on resale.

You may be able to deduct the direct portion on the doctor prescribed medical expense if you itemize and it exceeds more than 7.5% of your gross income. If you total taxable income was only $15,000 you will not have enough tax to save any money.

Any state sales tax you may have paid for the improvements is federal tax deductable (provided you itemize and reach the threshold %).

At least in Ohio any home improvements directly installed in you home are not taxable, but each state is different and things change.