Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
dimiasdaddy
New Member

I am being told I will receive a credit for the retirement account I pay into through my employer. Is this a "cash" credit (larger refund)?

I am being advised through Turbotax to upgrade, in order to get this. However I'm unsure if it's worth it, if I'm not getting more back. If it's just a "tax break" in the sense of saving me money that I may have to pay in, I don't want to do it. I'd be paying out more than I'm being credited.
1 Best answer

Accepted Solutions
JohnW222
Expert Alumni

I am being told I will receive a credit for the retirement account I pay into through my employer. Is this a "cash" credit (larger refund)?

It’s a "non-refundable" tax credit, which means that it can’t reduce the amount of tax owed to less than zero, so it won't necessarily increase your refund.

The so-called "Saver's Credit" is calculated on a specific percentage of the contributions you've made during the year, with the percentage based on your adjusted gross income.

Please see the TurboTax article "What is the 2019 Saver's Credit?" for more information.

I'll also attach Form 8880 so that you can see how the calculation works.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
JohnW222
Expert Alumni

I am being told I will receive a credit for the retirement account I pay into through my employer. Is this a "cash" credit (larger refund)?

It’s a "non-refundable" tax credit, which means that it can’t reduce the amount of tax owed to less than zero, so it won't necessarily increase your refund.

The so-called "Saver's Credit" is calculated on a specific percentage of the contributions you've made during the year, with the percentage based on your adjusted gross income.

Please see the TurboTax article "What is the 2019 Saver's Credit?" for more information.

I'll also attach Form 8880 so that you can see how the calculation works.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v