Retirement savings contribution credit?

[s_carnes33]

I am not sure what that is...where is it on the tax form

[ThomasM]

The Retirement Savings Contribution Credit (a.k.a. Retirement Saver's Credit) is a non-refundable credit for contributing to an IRA or employer-sponsored retirement plan.  Like all credits, there are eligibility criteria and max limitations on the credit itself ($1000/$2000 MFJ).

If you have an employer plan that you contribute salary deferrals to, then TurboTax will read the box 12 code on your W-2 and factor that contribution into the calculation (no need to enter it elsewhere).  If you've made Traditional or Roth IRA contributions, then you'll enter those under Deductions & Credits > Retirement & Investments > Traditional & Roth IRA Contributions and TurboTax will make the Retirement Saver's Credit calculation based on your entry, but you'll still need to go into the Retirement Saver's Credit heading and answer a few questions.

The credit is calculated on a sliding scale, up to 50% of your contribution and the $1000/$2000 max depending on filing status).  The nice thing about this particular credit is that it's in addition to any other deduction the contribution might qualify for.

Here's an IRS link for more info:  https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-save...

[Marketstar]

The Savers Credit gives a special tax break to low- and moderate-income taxpayers who are saving for retirement.

See What Is the Saver's Credit?

Please follow below steps for Retirement Savings Credit:

1.    Federal Taxes

2.    Deductions & Credits (you may have to select See all tax breaks)

3.    Scroll down to Retirement and Investments, select Retirement Savings Contribution Credit