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Returning Member
posted Mar 20, 2024 12:28:45 PM

I have 1099-NEC income only (low income), contributed to ROTH IRA, can I get Retirement Contribution Credit?

I have 1099-NEC income only and belong to the low-income category. I am not a student and I contributed to my ROTH IRA account for 2023. However, the TurboxTax doesn't seem to recognize the contribution as a qualified contribution and didn't gave me the Retirement Contribution Credit?  Is my understanding wrong or is it a bug?

 

I am using the Windows Desktop version of the TurboTax 2023 Deluxe.

 

Thanks.

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1 Replies
Expert Alumni
Mar 20, 2024 12:38:11 PM

You qualify for the credit if you’re:

  • 18 or older
  • Not a full-time student
  • Not claimed as a dependent on someone else’s return

In 2023 your adjusted gross income (AGI) also can’t be more than:

  • $73,000 if Married Filing Jointly
  • $54,750 if Head of Household (with qualifying person)
  • $36,500 if Single, Married Filing Separately, or Surviving Spouse with dependent child

 

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

 Form 8880 is used to figure the amount, if any, of your retirement savings contributions credit (also known as the saver’s credit). The maximum amount of the credit is $1,000 ($2,000 if married filing jointly)