Last tax year of 2021, my 401 K contribution amount was the same as this tax year of 2022.
In 2021 a received a tax credit of $394.00. This year I am only receiving a tax credit of $79.00.
Can anyone please explain why such a difference in credit from one year to next with same amounts of contribution?
You'll need to sign in or create an account to connect with an expert.
If you received a Saver's Credit in 2021 for your 401K Contribution, the amount of the credit is based on your income.
Even though you made the same 401K contribution amount in 2022, if your income is higher than 2021, the credit is reduced.
You can see how the credit was calculated on Form 8880.
Here's more info on Form 8880.
There is only a $3000 difference between last tax year and this tax year as far as income.
Amazed at how that little difference in income can make such an impact on a tax credit, e.g. administration?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ED001
Level 1
hynrel53
New Member
bethfly
New Member
helloTT102
New Member
meghanresponds
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.