I'm doing my girlfriend's taxes and Turbo Tax is not applying any credit for the Retirement Savings Contribution Credit. She meets all the criteria for the credit: She's not a full time student; she was born before Jan. 1, 2003; no one else can claim her as a dependent; and her AGI as Head of Household was less than $29000. She contributed $927.67 to her 403(b) account, so based on everything I've read, she should be getting a 50% credit but TT is not giving it. It shows up as $0. Anyone know what's going on here?
The Retirement Savings Contributions Credit (“Saver’s credit”) is very limited and is for low income people. See the table on Form 8880: https://www.irs.gov/pub/irs-pdf/f8880.pdf
You, or your spouse, must not have taken money out of a retirement account (including drawing a pension) in the last three years.
It is not a refundable credit. You must have a tax liability to take the credit against.
TurboTax (TT) will check this automatically when it sees you made a qualified contribution. If you want to verify that happened; enter in TT at:
Federal Taxes Tab
Deductions & Credits
-Scroll down to:
-Retirement and Investment
- Retirement Savings Contribution Credit
If it's still not giving it to you, review form 8880 for the calculations
"It is not a refundable credit. You must have a tax liability to take the credit against."
I think that answers my questions. She doesn't have any tax liabilities as she's getting a refund, so that's probably why it's not showing a credit. Thank you for taking the time to answer my question!!