When a Code G is entered on Line 12 the amount is not transferred to form 8880 for the retirement credit. When code D is entered it flows correctly to Form 8880. Code G is used by the county where the person works and is similiar to a 401k .

[qbteachmt]

457(b) is deferred comp. Not the same as 401(k). I'm pretty sure that's not qualified for purposes of the retirement savings credit. I know mine wasn't when I was a county teacher paid through the State.

[Camp1040]

A code G can also mean Non-Elective Deferrals: These are employer contributions that are not based on employee contributions.

[Terry53029]

The IRS says yes to 457B plans. Link: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-cred...

"Depending on your adjusted gross income reported on your Form 1040 series return, the amount of the credit is 50%, 20% or 10% of:

• contributions you make to a traditional or Roth IRA,
• elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan,
• voluntary after-tax employee contributions made to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan,
• contributions to a 501(c)(18)(D) plan, or
• contributions made to an ABLE account for which you are the designated beneficiary (beginning in 2018)."
• This is what the IRS says about 457B plans. 

       "Plans of deferred compensation described in IRC section 457 are available for certain state and local governments and non-governmental entities tax exempt under IRC Section 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC 457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Ineligible plans may trigger different tax treatment under IRC 457(f)."

• Seems like an error in ProSeries to me

[qbteachmt]

To clarify: the OP didn't stated 457(b). I did. We don't know enough to answer definitively.

[Terry53029]

Code G on a 2024 W2 box 12 is Elective Deferrals From a 457B

[TaxGuyBill]

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@Terry53029 wrote:

Code G on a 2024 W2 box 12 is Elective Deferrals From a 457B

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That is not what I read.  It says Code G is ALSO for employer contributions (which would not qualify for the credit).

[BobKamman]

The IRS instructions for preparing W-2 forms state:

Code G—Elective deferrals and employer
contributions (including nonelective deferrals) to any
governmental or nongovernmental section 457(b)
deferred compensation plan.

Up until about 1986, here in Arizona, these were after-tax.  Since then, they are pre-tax and not shown in Box 1.  

What may be confusing is that the instructions also state:

The following are not elective deferrals and may be
reported in box 14, but not in box 12.
• Nonelective employer contributions made on behalf of
an employee

But the specific (government employees) applies over the general (everyone else).  

[Terry53029]

@TaxGuyBill Not sure where you are reading, but the 2024 instructions state as follows:

Only elective deferrals and designated Roth contributions should be reported in box 12 for all coded plans; except, when using code G for section 457(b) plans, include both elective and nonelective deferrals.

Here is the link for the 2024 instructions.

https://www.irs.gov/instructions/iw2w3

[TaxGuyBill]

You look at the Instructions and in the Box 12 Code descriptions, it says:

"Elective deferrals and employer contributions
(including nonelective deferrals) to a section
457(b) deferred compensation plan".

Employer contributions and nonelective deferrals don't qualify for the credit.  Even if ignore the "employer" part, nonelective deferrals do not qualify for the credit [see §25B(d)(1)(B)(ii)].

https://www.irs.gov/pub/irs-pdf/iw2w3.pdf#page=32

[Terry53029]

@TaxGuyBill  I was looking at the instructions for code g in the verbiage. But if you look at the table you are correct. They seem to contradict one another. If you look at the code G in PS W2 worksheet it says elective deferrals to 457B plan. Not sure what is correct to report, but only deferrals qualify for the savers credit if all qualifications met

[Camp1040]

If boxes 1,3 & 5 of the W-2 form are the same amount I would tend to think the box 12 amount is a non-elective deferral.

[BobKamman]

@Camp1040   Non-elective deferrals under state and local retirement plans here in Arizona are taxed for FICA but pre-tax for income tax, so Box 1 is always less than Boxes 3 and 5.  

[Camp1040]

Yes,I didn't think that one through. In TN,  generally non elective deferrals are info in box 14.

[Coria_ITS]

I was having this same issue, but I noticed next the Box 12 input it gives you some options related to Code G on Box 12. I know for a fact the one I have is an elective deferral, so I clicked on Yes. Once I did that it added the Form 8880 and gave me the Saver's Credit.

[TaxGuyBill]

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@Coria_ITS wrote:

but I noticed next the Box 12 input it gives you some options related to Code G on Box 12.

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I forgot about that!  Thanks for the reminder.