topic I made $22,000 and contributed $5,500 to my Roth IRA. I should get a Retirement Savings Contribution Credit 10% of %5,500 ($550). Why is it only showing as $200? in Retirement tax questions

I made $22,000 and contributed $5,500 to my Roth IRA. I should get a Retirement Savings Contribution Credit 10% of %5,500 ($550). Why is it only showing as $200?

pierc127 — Tue, 04 Jun 2019 20:59:31 GMT

The maximum amount of retirement plan contributions that...

re2boys — Tue, 04 Jun 2019 20:59:33 GMT

The maximum amount of retirement plan contributions that can be used in calculating the credit is $2000 (see line 6 of form 8880) https://www.irs.gov/pub/irs-pdf/f8880.pdf

10% of $2000 is $200.

Amount of the credit The amount of the credit is 50%, 20%...

Ashby — Tue, 04 Jun 2019 20:59:34 GMT

Amount of the credit
The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA or ABLE account contributions depending on your adjusted gross income (reported on your Form 1040 series return). The maximum credit amount is $2,000 ($4,000 if married filing jointly)

The maximum credit amount is $2,000 ($4,000 if married fi...

SweetieJean — Tue, 04 Jun 2019 20:59:35 GMT

The maximum credit amount is $2,000 ($4,000 if married filing jointly).
<a rel="nofollow" target="_blank" href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit">https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit</a>

The maximum possible credit per individual is 50% of the...

dmertz — Tue, 04 Jun 2019 20:59:37 GMT

The maximum possible credit per individual is 50% of the first $2,000 = $1,000, not $2,000.

If your AGI puts you in the 10% range, your credit is 10% of $2,000 = $200, exactly as TurboTax has calculated on Form 8880.

So the link I cited above is incorrect?

SweetieJean — Tue, 04 Jun 2019 20:59:38 GMT

So the link I cited above is incorrect?

@dmertz So, I see exactly what you're saying on Form 8880...

Ashby — Tue, 04 Jun 2019 20:59:40 GMT

@dmertz So, I see exactly what you're saying on Form 8880. Seems like a bad explanation from IRS. I do not see a way that you could get a $2,000 or $4,000 credit.

Wow, now I see where everyone is getting the wrong inform...

dmertz — Tue, 04 Jun 2019 20:59:41 GMT

Wow, now I see where everyone is getting the wrong information. I didn't realize that the IRS website has it wrong.

The Savers Credit is a 'non-refundable' credit. That mean...

Ashby — Tue, 04 Jun 2019 20:59:44 GMT

The Savers Credit is a 'non-refundable' credit. That means this credit can reduce the tax you owe to zero, but it can't provide you with a tax refund.

But can you explain the math to me? Why is my credit $200...

pierc127 — Tue, 04 Jun 2019 20:59:45 GMT

But can you explain the math to me? Why is my credit $200 instead of $550? This is not a helpful answer so far.

Your math is correct, but the credit will only show the a...

Ashby — Tue, 04 Jun 2019 20:59:46 GMT

Your math is correct, but the credit will only show the amount that will take your tax liability to zero. So, if Line 11 on your Form 1040 is only $200, your credit will only show as $200.