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submatrix
Level 1

According to TurboTax, the "Retirement Savings Contribution Credit" is a non-refundable credit. However, TurboTax adds $400 to my refund for the credit. Is this an error?

 
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dmertz
Level 15

According to TurboTax, the "Retirement Savings Contribution Credit" is a non-refundable credit. However, TurboTax adds $400 to my refund for the credit. Is this an error?

"Nonrefundable" simply means that it cannot be used to reduce your income tax liability below zero.  Until your tax liability reaches zero, each dollar that your tax liability is reduced increases your tax refund by a dollar (or decreases your balance due by a dollar).

View solution in original post

2 Replies
xmasbaby0
Level 15

According to TurboTax, the "Retirement Savings Contribution Credit" is a non-refundable credit. However, TurboTax adds $400 to my refund for the credit. Is this an error?

The credit reduced your tax liability, resulting in a bigger refund.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
dmertz
Level 15

According to TurboTax, the "Retirement Savings Contribution Credit" is a non-refundable credit. However, TurboTax adds $400 to my refund for the credit. Is this an error?

"Nonrefundable" simply means that it cannot be used to reduce your income tax liability below zero.  Until your tax liability reaches zero, each dollar that your tax liability is reduced increases your tax refund by a dollar (or decreases your balance due by a dollar).

View solution in original post

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