Pre-tax 457(b) contribution does not appear to be accounted for in refund amount or reducing taxes

Question

Hi:

I contribute to a 457(b) plan and I am concerned that the tax software is not making this deduction for the pre-tax contribution.  I have contributed a little over $2000, to the pre-tax 457(b), along with additional Roth 457(b) contributions. But when I add the pre-tax contribution, it does not appear that my federal or state refund increases.

Given that I am expecting this to be a pre-tax contribution which should be reducing my income, I would have expected to be seeing an additional refund amount, but it isn't reflected and it shows exactly the same when I delete it. Is there a way to confirm that this is properly being accounted for? I would not want to end up not receiving the tax benefit that I'm due now because of a software glitch and then being expected to pay taxes on this when I withdraw.

Any help is appreciated.

KeriC · Accepted Answer

A 457(b) plan is a deferred compensation plan done through your employer. Your employer will account for this on your W-2 by reducing your Box 1 wages by the pre-tax contribution amount. Because your Box 1 wages exclude your contribution amount, it is already being deducted from your taxable income and you won't see any separate line items on your return showing the contribution amount.