I have 401K. After I answered the question "Is xxx covered by a retirement plan at work?", I got the page "It turns out you don't qualify for a retirement tax break.", it says "because of your income, you're not eligible to take a deduction this year". I don't get what it means. I think 401K pre-tax contribution has nothing to do with my income?
Retirement Savings Contribution Credit is income-based. The retirement tax break you saw on the screen is likely referring to this credit.
Your 401(k) contribution is pre-tax dollars already and the contribution is not included in your taxable income for 2021 (Box 1 of W-2).
If you did not make any contribution to your IRA account, do not enter the 401(k) contribution into TurboTax. If you did contribute to your IRA account, and if your income is over the limit, you may get a message telling "you're not eligible to take a deduction this year"
Retirement Savings Contribution Credit is income-based. The retirement tax break you saw on the screen is likely referring to this credit.
Your 401(k) contribution is pre-tax dollars already and the contribution is not included in your taxable income for 2021 (Box 1 of W-2).
If you did not make any contribution to your IRA account, do not enter the 401(k) contribution into TurboTax. If you did contribute to your IRA account, and if your income is over the limit, you may get a message telling "you're not eligible to take a deduction this year"