Please review the requirements for the Retirement Savings Credit below and review that you have entered the information in box 12 from your W-2 correctly.
- Login to your TurboTax Account
- Click on the Search box on the top and type “W-2”
- Click on “Jump to W-2”
You qualify for the credit if you’re:
- 18 or older
- Not a full-time student
- Not claimed as a dependent on someone else’s return
In 2020 your adjusted gross income (AGI) also can’t be more than:
- $65,000 if married filing jointly
- $48,750 if head of household (with qualifying person)
- $32,500 if single, married filing separately, or qualifying widow(er) with dependent child
Please be aware that the maximum credit is $1,000 ($2,000 for married taxpayers who are filing jointly), but is often less due to other deductions and credits and is limited by income (What is the 2020 Saver's Credit?).
For more details on how to calculate your credit, see the IRS Saver's Credit page.
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Also, this is a nonrefundable credit. If your income tax on Form 1040 line 21 without applying this credit is already zero, you do not qualify to receive any of this credit. Other taxes such as self-employment tax and penalties for early distributions from retirement accounts cannot be reduced by this credit.