My Retirement Savings Credit is only giving me a $1000 credit while still saying I owe $291. I am married filing jointly, and our income is under the $39,500 threshold for 50% credit on contributions. I contributed $4,708 to my 401k in 2021, which should qualify for the married filing jointly maximum of $2,000 (or at least up to the amount of federal tax I am liable for in 2021), but turbotax is only giving me the $1,000 credit.
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The max you can get is $2000 but only if BOTH of you contribute to a retirement plan ... review the form 8880 and note the 2 columns for the separate calculations :
The max you can get is $2000 but only if BOTH of you contribute to a retirement plan ... review the form 8880 and note the 2 columns for the separate calculations :
$2000 is not the credit. $2000 is the maximum amount (for each person) that can be used to calculate the credit. Since you are eligible for the maximum 50%, $1000 is the credit your should be expecting ($2000 x 50% = $1000).
As Criiter-3 pointed out, if your spouse had also made a $2000 (or more) contribution, you would have then gotten a $2000 credit ($4000 x 50%).
You do not get to count any of your $4708 contribution in the spouse column on form 8880. She must have made her own retirement contribution.
Above Reply edited
Thank you. Frustrating, but thank you, haha
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