TurboTax wouldn't let me take the retirement savers credit

[sdfulbright]

The program told me not to enter the 292$ contribution to my 401K that is on my W-2.  I do not understand, this is my voluntary contribution for last year which is 1/2 matched by the company, is there a minimum?

[Hal_Al]

It depends on where it is on your W-2.  Deductible contributions are reflected by an entry in box 12 with code D.  TurboTax will pick that up automatically and you should not re-enter it.  If you have voluntary, non deductible contributions, shown somewhere else (usually box 14), that should be entered separately (TT will not pick it up automatically). 

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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. See line 2 on form 8880.

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

[sdfulbright]

It is in box 12 with code D.  But I just did my taxes without it and the refund is the same as they figured so they didn't include it which is why I was trying to enter it.

[Hal_Al]

You're probably not eligible.  Very few people are. Even if you are eligible, you may see no effect, if you already have other credits (mostly the child tax credit*).  Review form 8880.

*Note: Taxpayers can use the savers Credit before using the Child tax Credit (CTC), sending some of the CTC to Additional CTC (line 17 of form 1040). If you are already getting the maximum $1400 ACTC (per child), then it doesn't really matter if line 12 is from CTC or form 8880 (the saver's credit will provide little or no benefit).

[sdfulbright]

I have no children. Maybe if you take the earned income credit you don't qualify?

[sdfulbright]

Lines 1,2,3 on Schedule 3 are 0.

[Hal_Al]

The EIC is all refundable, so, no that would not affect the Retirement savers credit.

But if you have no children and are getting EIC, you income may be too low  for the savers credit.

Look at line 18 of form 1040.  If it's already zero, you don't have any tax to offset with a non refundable credit.

If you reply back, tell us what's on lines 15, 16 and 18 of form 1040; and what's on lines 1-7 of form 8880.

[sdfulbright]

That must be it.  Line 18 is zero.  Thanks for explaining all of that!