I am self employed and have a profit sharing plan in my business. Why is my employer profit sharing contribution reported on my 1040 and not my Schedule C?

[TomD8 · Accepted solution]

Self-employed retirement contributions for your employees are entered in the Less Common Business Situations section of TT, on the line headed "Self-employed Retirement".  If you enter the information there it should go to your Schedule C.

[dmertz]

Contributions for the self-employed individual appear as a deduction on Schedule 1 line 28, not as a business expense on Schedule C.  Only contributions made to the accounts of employees of the business (other than the self-employed individual) are business expenses on Schedule C.  This is because self-employed retirement contributions do not reduce the amount of net profit used to determine self-employment taxes.

[TomD8]

@dmertz -  Thank you.