Can I reduce my tax bill by contributing to my 403(b) at work?

[AMonellKY]

We have a large tax bill this year. Both my husband and I have retirement plans at work and also add to his traditional IRA. We aren't getting any credit for the IRA contributions because we are just over the MAGI. I am not contributing to my account right now (my employer does automatically), if I do add more to retirement would that lower our tax bill for next year? I'd rather put money in retirement than just pay taxes.

[MinhT1]

If you have a 403(b) plan at work, you can contribute up to $19,500 (plus a catch up of $6,500 if you are  or older). This contribution will help lower your tax for tax year 

[jimshepherd]

Yes, you will save for retirement while getting a deduction on your taxes.  Make sure that when contributions are made to your account that they are on a deductible basis which you would do with your employer.  These deductions are on a calendar year basis.

Are 403(b) Contributions Tax Deductible? - TurboTax Tax Tips & Videos (intuit.com)

"Generally speaking, only your employer can make contributions to your 403(b) account. As with a 401(k) plan, if you participate in a 403(b) plan your employer will take money out of your paycheck before you receive it and deposit it into your 403(b) plan account. This is known as an elective deferral.

Since you do not report the amount of the deposit as taxable income on your income tax, it effectively works like a tax deduction. If your employer makes matching or other additional deposits to your account, those are also tax-deferred."

[AmeliesUncle]

You will pay less tax, but it won't necessarily lower your "tax bill" when you file your tax return.

If you contribute to a retirement account through your employer, your employer will reduce your taxable income by that amount (Box 1 of the W-2), but they will ALSO withhold less income tax.

If you want to avoid a large bill when filing your tax return, you should have more tax taken out of your paycheck (give your employer a new Form W-4) or pay Estimated Tax payments.