Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
ceceliareber
New Member

I have a retirement account through my employer. All the contributions are pre-tax. Do I need to claim a deduction on those contributions?

 
1 Reply
NicoleU
New Member

I have a retirement account through my employer. All the contributions are pre-tax. Do I need to claim a deduction on those contributions?

No, since the 401(k) plan contributions are made with pre-tax dollars, your employer does not include these amounts in your taxable income for the year. At the end of the year, when you receive your W-2 form that shows your earnings, you will notice that your wages subject to federal income (box 1) tax are lower because of your 401(k) plan contributions (box 12). Since the contributions are not counted in your taxable income to begin with, you do not take a deduction when you file your return.



Dynamic AdsDynamic Ads
Privacy Settings
v