Retirement Savers Credit Bug?
The retirement savers credit is not being calculated correctly in 2025 early release. With $14119 AGI for a single filer return it is giving me $182 credit for a $835 IRA contribution, so neither the correct 50% nor 20%. How can I even report a bug? The website only allows me to send a message to support.
Answers
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I did search this forum for mention of a bug. Two AIs confirmed it is a bug based on AGI limits, though IRS has not published the exact 2025 limits. In any case the limit is higher than AGI enterer and RSC is properly calculated at some higher AGIs than test case.
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Hi porpoiseoflife394,
The Retirement Savings Contributions Credit (Saver’s Credit) is a nonrefundable credit, which means that it would be limited by the amount of tax on a return. If the tax on the return is less than the amount of contributions eligible for the credit, the credit would be limited to that amount.
As an example, let's take a taxpayer who is eligible for the 50% credit who contributed $800. If the tax on their income is $400 or more, they would receive the full $400 credit (50% of $800). However, if their tax is less than $400 the credit would be limited to the amount of income tax on the return. The calculations are all taxpayer specific so if you have further questions I would recommend reaching out to us via the support center in your account for specific assistance.0 -
I have realized my error nlw after contacting support. Rookie error. I'll withdraw this question. Thank you.
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This post was an obvious error on my part that I missed. I can't seem to edit or delete the original post, so hopefully folks will read down to this comment and ignore. Lower amount of RSC is due to not enough tax to get the full credit against. Thanks to FTU support as well as respondents who have IDd my error.
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Hi porpoiseoflife394,
No problem. We appreciate your question and hopefully this discussion thread will help someone.0
