The Retirement Savings Contribution Credit is a credit for making eligible contributions to your IRA or employer-sponsored retirement plan (i.e 401k). It is designed to encourage those with adjusted gross income levels below a certain amount to save for retirement.
The basic eligibility requirements are that you must be -
- Age 18 or older;
- Not a full-time student; and
- Not claimed as a dependent on another person’s return
The amount of the credit is based on filing status, your adjusted gross income, and the amount of your contribution to a retirement plan. You can find more information about the specific levels of the credit at the link below.
If you did contribute to a retirement plan, then you should click on that credit and go through the questions to see if you qualify. If you contributed to a 401K through your employer, then that information is likely on your W2 box 12 and the program will pull it into that section automatically.
