If our tax liability is 530 and our dependent tax credit is 530.... what would the amount of our retierment savings contribution credit??

[bianca-gray]

me and my husband are married and are filling a joint return. my husband made 35000 and he contributed 2000 to his 401(k) plan at work, i earned 5000 and contributed 1000 to my 401(K) . we have three dependents and our agi is 37000. our tax liability is 530. what would the amount of our retierment savings contribution credit??

[IreneS · Accepted solution]

If your tax liability is $530 and the dependent tax credit is also $530, it sounds like you've brought your tax liability down to zero. 

The Retirement Savings Contribution Credit is a nonrefundable credit.  A nonrefundable credit is subtracted from your income tax liability, up to the total amount you owe. But unlike a refundable tax credit, a nonrefundable credit cannot reduce your tax balance beyond zero.