401K Contribution - Where to enter

[TeamRossi2017]

401K contribution limit is $19,500.  My wife contributed $9600 in 2020, and when I enter that amount in turbo tax, I get a message that it exceeds the allowable amount and we have a penalty.  Where in turbo tax do I enter her 401K contribution so that doesn't happen??

[TomD8]

Since 401K 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 tax are lower because of your 401(k) plan contributions.

Since the contributions are not counted in your taxable income to begin with, you do not take a deduction when you file your return. 

Contributions to your 401(k) will normally appear in box 12 of your W-2 form, with the letter code D.

[Opus 17]

Employer-based plans are only reported on your W-2, they are not reported on your tax return in any other way. Do not add employer-based plans when you are asked about IRAs.  An employer plan is not an IRA—even though they have a similar purpose, they are controlled by different sections of the tax code and many of the rules about them are very different.