Husband & I, both age 50 contributed a combined $38,700 to 401ks. But income only reduced by $23,110 for said contributions. Why? Is there a cap due to overall income?

There is a cap on contributions to 401(k) plans. The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan is increased to $23,000, up from $22,500. The limit on annual contributions to an IRA increased to $7,000, up from $6,500.

The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2024.

The limit on income reduction for contributions to a 401(k) is 100% of an employee's compensation, or the annual contribution limit, whichever is less. 

See here for more information from the IRS about retirement contributions.

You might also go back through the interview for retirement plans in TurboTax to be sure the questions were all answered correctly for your situation.

You can preview your return before filing to find out how your taxes were calculated. See here for details.