What is elective deferrals to 403(b) salary reduction agreement

[princes2000_2821]

Box 12

[MargaretL · Accepted solution]

The 403(b) elective deferrals salary reduction agreement means you have a retirement plan at work (similar to 401k plans), where employer takes money out of your paycheck before you receive it and deposits it into your 403(b) retirement plan.  The plan is considered an elective deferral, meaning you do not report the deposits into the plan as taxable income, which in a way is a tax deduction.  If your employer makes any matching contributions to the plan, they are not taxable as well.  The total amount deposited shows on your W2, box 12 and is not included in W2 box 1, as taxable wages.

[sara-chopp1]

where do I claim that deduction on my return

[lcal]

greatly appreciate. thank you

[Maxitout]

TT is not allowing me to take both the over 50 catch-up and the 15 year service catch-up though I am qualified for both.  TT says I had too much deferred.  I can see this was a problem last year for users as well.  Is this being addressed?

[Karl L]

The Federal Refund shown before I populate this box is $944.  After I populate the box with $5,004.92,  I'm getting a Federal Tax Due of $4,061.  Why is this?

[Irene2805]

There shouldn't be a change in your federal refund because of an amount entered in box 12 of your W-2.  These are just informational entries to explain the difference in Boxes 1 and 3 on your W-2.

Box 1 is your taxable income, which is your gross minus the 403(b) reduction listed in box 12.

[Coulsojl]

It’s doing the same thing to us. Any amount we enter in for Box 12, code E increases our tax liability almost dollar for dollar. Has there been a fox for this?

[BillM223]

What amount are you trying to enter with Code E in box 12? Are you making any other deferred contributions such as for a 401(k) (code D)? How about for a SIMPLE IRA?