☰
✕
Sign In

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 Jun 3, 2019 4:37:37 PM

Is it right when Box1 wages are less than my gross wages?

Is it right that I am limited to 401k contirbutions when box1 wages are significantly lower than my gross wages? I specifically contributed most of my wages to my 401k for the tax deduction. 

0 1 248
1 Best answer
Level 15
Jun 3, 2019 4:37:39 PM

Yes.  Your employer excludes the amount of your elective deferrals to the 401(k) from the amount in box 1.  That's how the taxes are deferred, by not including it in box 1.

Your elective deferrals should be shown with code D in box 12 of your W-2.  Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.

1 Replies
Level 15
Jun 3, 2019 4:37:39 PM

Yes.  Your employer excludes the amount of your elective deferrals to the 401(k) from the amount in box 1.  That's how the taxes are deferred, by not including it in box 1.

Your elective deferrals should be shown with code D in box 12 of your W-2.  Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.