401k + Insurance credits - Should reduce taxable income

pjain17 — Mon, 09 Mar 2026 08:29:37 GMT

Where does turbo tax desktop system shows less taxable income due to 401K, Health Insurance credits

Re: 401k + Insurance credits - Should reduce taxable income

DawnC — Thu, 10 Mar 2022 04:46:57 GMT

Your 401K contributions are not included in Box 1 of your W-2, so they are never included in your taxable income. Same with health insurance you paid with pre-tax dollars. Any medical premiums you pay with pretax dollars aren't counted in your taxable income. When your employer prepares your W-2, your employer won't include these premiums in box 1, so you can see on your W-2 how those costs reduce your taxable income. You will see them in box 12 of your W-2, but not in Box 1. The income is Box 1 is subject to federal income tax, but your 401K contributions and pre-tax employer sponsored medical premiums will not be included in that number.

So, you won't see TurboTax lowering your taxable income for those items since they were never in your taxable income to start with. If you have medical premiums you paid with post-tax dollars, you will need to itemize deductions on Schedule A to see any tax benefit.

To deduct unreimbursed, out-of-pocket medical, dental, and vision costs on your federal return:

You must take the itemized deduction;
The expenses for you, your jointly-filing spouse, and your dependent(s) must exceed 7.5% of your AGI (adjusted gross income); and
Only the portion above and beyond 7.5% of your AGI is deductible.

Re: 401k + Insurance credits - Should reduce taxable income

VolvoGirl — Thu, 10 Mar 2022 04:52:44 GMT

You already got the deduction. 401K come out of your checks pretax and have already been deducted from the wages in box 1 and you can't deduct it again. See box 1 should be less than boxes 3&5.

topic 401k + Insurance credits - Should reduce taxable income in Deductions & credits

401k + Insurance credits - Should reduce taxable income

Re: 401k + Insurance credits - Should reduce taxable income

Re: 401k + Insurance credits - Should reduce taxable income