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Retirement tax questions
"It doesn't seem to matter what I say it's for on the Turbotax dropdown after it imports my W2 info."
In same case, the choice of category should make a difference. "Other (not classified)" makes no impact on your return, while "Other deductible state or local tax" should appear on Schedule A as a state or local tax. However, as you probably realize, state and local taxes often don't make a different on tax returns, because the taxpayer either doesn't itemize or because the taxpayer's state and local taxes exceed $10,000.
But the reason we asked about what this value represented was because contributions to pension funds are normally exclusions from income, not deductions. Thus, in most cases, the contributions to a retirement plan would be removed from Wages in Box 1 on your W-2 and added to box 12 with a code of D.
This is so common, it makes us wonder what your employers is trying to say.
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