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If I made pre-tax contributions to a 403b plan at my work (money was subtracted from my gross income on my W-2), should I enter or not enter that amount for the Trad.IRA

 
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1 Reply
MargaretL
Expert Alumni

If I made pre-tax contributions to a 403b plan at my work (money was subtracted from my gross income on my W-2), should I enter or not enter that amount for the Trad.IRA

You should NOT enter this as an IRA contribution.

Please do not report any contributions (reported on your W-2, box 12, D) as a separate entry in Turbo Tax. All you have to do is report W2 data in Turbo Tax exactly as it appears on the form.

The 403(b) plan contributions you elect to make come directly out of your salary. Since the 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 403(b) 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.

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