Have Tax Questions? Ask a Tax Expert for Answers ASAP
Your adjusted gross income is already reduced by the 401(k) that is deducted from his pay. If you look at box 1 on the w-2 you will see that it is reduced by the amount deducted for the 401(k). Box 1 should be less than box 3 by the amount deducted. If it isn't then the payroll service is making an error.