Should I report Roth IRA contributions on my tax return?

Thanks for the quick answer! So just to be extra clear - I don't need to mention this anywhere on my 1040 form? And what's this Saver's Credit you mentioned? I make about $52,000 a year as a teacher if that matters.

That's correct - you don't need to include your Roth IRA contributions anywhere on your 1040 form unless you're claiming the Saver's Credit. The Saver's Credit is a tax credit for low to moderate income taxpayers who contribute to retirement accounts. With your income of $52,000 as a teacher, you may qualify for a partial credit. For 2024 taxes (filed in 2025), individuals with an adjusted gross income of up to $36,500 get the maximum credit, but partial credits are available for incomes up to $73,000 for single filers. You would use Form 8880 to claim this credit if eligible. It's worth checking if you qualify since it could reduce your tax bill.

Does it work with all the major brokerages? I have my Roth IRA with Vanguard and I get confused every year about how to handle it in my tax software.

I'm a bit skeptical about tax tools. How does it compare to something like TurboTax or H&R Block? Can it actually find deductions and credits they miss?

Yes, it works with all the major brokerages including Vanguard! It can directly import your Vanguard statements and knows exactly how to interpret the contribution information for your Roth IRA. I was initially using TurboTax but switched to taxr.ai because it's much more thorough with finding credits and deductions. In my case, TurboTax didn't prompt me about the Saver's Credit even though I qualified, but taxr.ai immediately flagged that I was eligible. It's designed to analyze all your documents and find opportunities that other software might miss. The tax code is so complex that even the big name software can overlook things if you don't know to look for them specifically.

Wait, how does this actually work? The IRS phone lines are notoriously impossible to get through. Are you saying this service somehow jumps the queue?

Sounds like BS to me. Nobody can get through to the IRS faster unless they have some special backdoor access, which would be sketchy. I've been trying for weeks to talk to someone about my tax situation.

It doesn't jump the queue in the way you might think. What Claimyr does is automate the calling process. It calls the IRS repeatedly using their system and navigates the phone tree for you, then calls you when it actually reaches a human agent. So you're still in the same queue as everyone else, but you don't have to sit there listening to hold music for hours or repeatedly calling back when you get disconnected. I had the exact same reaction as you initially. I spent three full days trying to get through on my own and kept getting disconnected after waiting for hours. I was desperate and figured it was worth trying. The service basically does the tedious work of calling, navigating the menu options, and waiting on hold. When they finally get a live person, they connect you immediately. It's not a backdoor access thing - it's just automating the frustrating parts of the process. I was shocked when I actually got to speak with an IRS agent after trying unsuccessfully on my own for so long.

How much of a credit can you actually get from this? Is it worth the hassle of filling out another form?

The credit can be up to 50% of your retirement contributions depending on your income level, with a maximum credit of $1,000 for individuals or $2,000 for married couples filing jointly. Even at lower percentages (20% or 10% based on higher income levels), it's definitely worth filling out the form. Form 8880 is actually pretty simple - it only takes about 5 minutes to complete if you already know your retirement contribution amounts. For example, if you contributed $3,000 to your Roth IRA and qualify for the 20% credit rate, that's a $600 reduction in your tax bill - not just a deduction, but a dollar-for-dollar reduction in taxes owed. That's significant for just a few minutes of work!

Yes! This is super important. I did a backdoor Roth conversion last year and had to report it on Form 8606. My tax software (TaxAct) actually didn't prompt me for this correctly and I had to manually add the form.