401(k) Estimate 2008 Income Taxes?

Question

I got married and need to change our W-4. I am estimating online using Turbo Tax and H & R Block Tax Cut Basic. Shockingly we will OWE big time when we used to get $1,000 back each. The question is, though, both programs are reflecting my Health Savings Account (HSA) (deducted from my paycheck pre-taxed) in the adjusted gross income but not his traditional 401(k) (deducted from his paycheck pre-taxed). Shouldn't it subtract from the gross income his 401(k) contributions like it did my HSA? They are both pre-tax....?

Answer 1

The reduction for the 401k is already accounted for on the W2.

HSA's are tricky when it comes to entering them in to software programs.  The trick is getting them to show up in the right place.

Assuming that the distribution was for medical expenses it needs to go on Form 8889 and not line 21.  You need to figure out how to add this form to the return.

Answer 2

If it's not a ROTH 401K, it's pre tax

Answer 3

Yes - the pre-tax 401K contributions should not be included in his taxable income - you probably did not enter the numbers the way TurboTax wanted you to - you probably should just subtract that amount from his wages to get the right calculation.