Does the federal tax due (in progress) include 401k deductions? or do they ownly show this at the end. Discrepancy w/ IRS w4 calc almost exactly matches this amount.

Forum|Forum|6 years ago
December 9, 2019
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TurboTax Premier Online

Best answer by VolvoGirl

Do you have your W2 already? You first deduct the 401K from the wages in box 1. The actual W2 you get will have the lower amount in box 1. Box 12 wont affect your tax return. Don't try to enter your pay without the actual W2. Your W2 usually doesn't match your paystubs. There are several pre-tax deductions that affect the boxes.

VolvoGirl

Employee

Your 401K contributions come out of your pay pre-tax and will be deducted from the wages in box 1 of your W2. So you don't need to enter them or deduct them again. Not really sure what you are asking.

A

Anonymous

turbotax doesn't seem to be making the deductions from my gross income when calculating my taxes owed - even though I have the deductions entered into turbotax in box 12. When I use the IRS W4 calculator without my 401k deductions, the amount owned matches what turbotax says is owed. I compared the W4 calculator line by line with what was entered into turbotax - the IRS W4 number also matches almost exactly when I just multiply out the tax brackets to my income. This seems like too simple of a calculation for me to have made a mistake.

Update - this is definitely the case - i changed box 12d to 0 and my tax owed didn't change... What is going on?

VolvoGirlAnswer

Employee

Do you have your W2 already? You first deduct the 401K from the wages in box 1. The actual W2 you get will have the lower amount in box 1. Box 12 wont affect your tax return. Don't try to enter your pay without the actual W2. Your W2 usually doesn't match your paystubs. There are several pre-tax deductions that affect the boxes.