No, retirement contributions are not counted as income on the federal return, but there are a few states who tax these amounts.
The amount in box 1 of the W-2 form is reduced by the amount that was contributed to the retirement plan, so you are not being taxed on that.
If you don't have a specific description that matches the drop down, select "Other".
If the amount is definitely a retirement contribution, you can enter it as such to get credit for the Retirement Savings Contribution credit. Do not enter it as an IRA contribution.
- Select Federal from the left side menu.
- Select Deductions and Credits toward the upper left.
- Expand the list and scroll down to Retirement and Investments.
- Expand the section and click Start or Revisit to the right of Retirement Savings Contribution Credit.
- Click Continue.
- On the screen, Let us know if you made any additional contributions to qualified retirement accounts, enter the amount in Additional contributions.
- Click Continue and answer the remaining questions in the section.
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