Why do I get an Incorrect Password error every time I connect my Lumia to home WiFi even though my password is correct?

There is an issue with a router configuration or compatibility, try the following:

  1. Log in to your wireless router, and change operating mode 802.11b/g/n to 802.11g only, and then restart/reset the router, and try to create a connection again.
  2. In the router settings, remove the WLAN security temporarily, and try to create a WLAN connection from the phone without any security settings.

For more details refer to the user guide of network router (compatibility is tested against the most common brands and standards but cannot guarantee compatibility to all brands & types of network routers in the market).