Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jan 7, 2025 11:42:37 AM

Defined Benefit Plan contributions

I work for a fire rescue district. We contribute to a chapter 175 defined benefit plan. It is a pre-tax contribution. On my W2 my contributions are listed in section 14. 

1. Is this correct?

2. Would I get a tax credit for this contribution or is it just noted?

0 1 2133
1 Replies
Level 15
Jan 7, 2025 12:52:15 PM

Chapter 175 appears to be a Florida law?

 

In general, when you contribute to an IRS-approved defined benefit plan, your box 1 taxable wages are reduced by the amount of the contribution -- that's how you get a tax break, because the money is not included in your taxable income.  Box 14 is a catch-all for things that are not required to be posted elsewhere, and most box 14 items have no effect on your tax return.  It's just there so you know the contribution was made.  Your box 1 taxable wage should be less than your contracted salary -- if you add your box 1 wages, plus the box 14 DBP, plus any other pre-tax items like health insurance, HSA, and so on, that should add up to your contractual wage.