The retirement savings contribution calc. says I qualify for a credit of $2,000, but can only take $473 because I don't owe enough. But TT says I owe $2121! WTH?

The Retirement Savings Credit (officially, Retirement Savings Contributions Credit or Saver’s Credit) is calculated automatically by TurboTax if you had a qualifying contribution and if you meet these criteria:

 

1. Age 18 or older,
2. Not claimed as a dependent on another person’s return, and
3. Not a student.
4. Your income is below the applicable limit for your filing status. The credit decreases with increasing income up to the limit.

You were a student if during any part of 5 calendar months of the tax year you:

• Were enrolled as a full-time student at a school, or
• Took a full-time, on-farm training course given by a school or a state, county, or local government agency.

See this IRS article for more information. 

 

You can preview your return before filing to find out how your taxes were calculated including the calculation of the Saver's Credit. See here for details. 

I am familiar with the qualifications for the credit, and meet them. Please address the actual subject of my specific situation, as I described it in my question.

This credit can only be applied to income taxes such that income taxes (Form 1040 line 22) cannot be reduced below zero.  It cannot be applied to other taxes such as self-employment taxes or penalties for early-distributions from retirement accounts.

Did you report Business Income and Expenses on Schedule C?  You may have Self-Employment Tax that is not reduced by the Saver's Credit.

 

Click on Tax Tools > Tools in the left-side menu, then choose 'View Tax Summary' from the pop-up menu.

 

Back at the left-side menu, choose 'Preview my 1040'.

 

Scroll through your return to see how the Saver's Credit was applied.  The credit amount shows on Schedule 3, Line 4 and carries over to Form 1040, Line 31.

 

In TurboTax Desktop, go to FORMS in the upper right corner to view these forms. 

 

@tseib