This is the first time my wife and I as married jointly filing tax payers are eligible for this credit. We made around 75k in 2024. Now, I contributed 1700 into a Roth 401k, my wife contributed 1500 into a traditional 401k. Why are we getting 400 back? Wouldnt we get 320 back instead since that is 10 percent of the amount we contributed? Turbotax is automatically allocating 400.00
This is the breakdown explanation from turbotax:
The credit amount you're eligible for is related to your adjusted gross income.
Looks like you are getting 20% of the 2,000 limit.
What is the Savers Credit article
What Is the Savers Credit? - TurboTax Tax Tips & Videos
It says….
Depending on your adjusted gross income and tax filing status, you can claim the credit for 50%, 20% or 10% of the first $2,000 you contribute during the year to a retirement account. Therefore, the maximum credit amounts that can be claimed are $1,000, $400 or $200.
That shouldnt be the case since we are filing jointly in that 10 percent range.
| 50,001-$76,500 |
Those are the same amounts I mentioned which is less that 4k
Did you make any IRA contributions? Or enter the 401K under Deductions & Credits? Look at form 8880. Then I don’t know. Someone else will have to reply. @dmertz ?
Before filing, You can preview the 1040 or print the whole return
We do the 4 percent contributions from each pay that we get. One goes into a Roth 401k the other goes to a regular 401k
Sorry in the Online version you have to pay to see your return. One thing you could do is delete the W2s and enter them again Manually. That may reset it.
I am so confused….. So in line 12A in the W2 on the income section those amounts are there am I supposed to be adding those same amounts in Traditional and Roth IRA Contributions for “Your Tax Breaks”
NO. I just was saying you do not enter them again under IRA contributions. Some people are entering them there too.
That fixed it! Thank you! I hope turbotax fixes that in the future. My IRA deduction was also removed.
Had you entered them there under IRA contributions? Do you also make separate IRA contributions? If you have 401K I don’t think you can make deductible IRA contributions. I’m not clear how that works. See IRS Pub 590-A IRA Contributions
No, those were removed and now just a standard deduction is there… Thanks for your help!