Did you also take any money out of a retirement plan? Your eligible contributions may be reduced by any recent (2018, 2019, 2020, or 2021 prior to 4/15) distributions you received from a retirement plan or IRA, or from an ABLE account. Furthermore, Rollover contributions do not qualify for the credit.
No I didn’t take any money out of my plan, and upon double checking the requirements for this credit, I meet all the criteria. It seems as though there’s a technical glitch in the software because it’s not recognizing info that I inputted from my W-2.
It also depends on whether you have any income tax liability for the Savers Credit to reduce. Do you have any income tax liability? The Savers Credit is a non-refundable credit, which means once your income tax liability is already reduced to zero, it's not going to provide any additional; i.e., it cannot reduce the amount of your income tax below zero. Review lines 16-22 of your Federal Form 1040, and Schedules 2 and 3.
To preview your return Form 1040 and Schedules 2-3, here are the steps.
- With your return open, go to the left menu column.
- Click on TAX TOOLS, then TOOLS.
- In the Tools window choose "View Tax Summary."
- At the Tax Summary screen go back to the left menu column and click on "Preview My 1040."
- You can then view the Form 1040 Worksheet and Schedule 3.