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Retirement contribution cr. pre-tax payroll deduct 401K. Do I qualify for the credit?

 
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ChristinaS
Expert Alumni

Retirement contribution cr. pre-tax payroll deduct 401K. Do I qualify for the credit?

It depends on your income and the other deductions/ credits on your return. To get this nonrefundable credit, your income cannot be too high (or too low).

The calculation is nearly automatic by Turbo Tax, after entering the W2 with Code D in Box 12.

You can see the criteria on line 9 of the form below (based on Adjusted Gross Income).

https://www.irs.gov/pub/irs-pdf/f8880.pdf

It is additionally limited by tax liability. If one already has $0 tax liability after deductions, exemptions, and other credits, a nonrefundable credit cannot increase a refund.

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