Beware. TurboTax presently has a bug where it tells you that you don't qualify for the credit, yet properly calculates and applies the credit. If you go back through the Retirement Savings Contributions Credit section a second time, TurboTax will give you the true indication as to whether or not you qualify for the credit and the amount of your credit.
to claim the retirement savings contribution credit (saver’s credit).
You are eligible to claim the credit on your return if the following applies:
- Age 18 or older;
- Not a full-time student; and
- Not claimed as a dependent on another person’s return.
The credit is based on contributions to an employer retirement plan like a 401k or contributions to an IRA (individual retirement account) you hold through a bank.
The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly), depending on your adjusted gross income (reported on your Form 1040 or 1040A). Use the chart below to calculate your credit.
The IRS has a calculation chart that can be found by clicking here
Contributions to any of the following retirement accounts will qualify for the credit.
- traditional or Roth IRA;
- your 401(k),
- SIMPLE IRA,
- 501(c)(18) or governmental
- 457(b) plan;
- and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans.