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You are not self-employed with respect to the S corp (except in regard to a self-employed health insurance deduction). You are an employee of the S corp. Your S corp is responsible for making your SEP contribution, up to 25% of the amount reported in box 5 of your W-2, and reporting the deduction on line 17 of the S corp's Form 1120S.
Since you are not self-employed (unless you have a separate self-employment business), you do not need TurboTax Self-Employed. Online TurboTax Premier is sufficient to be able to report your Schedule K-1 (Form 1120S).
A retirement contribution deduction shown on Form 1040 line 28 can only come from net profit reported on Schedule C or (positive) net income from self-employment reported with code A in box 14 of a Schedule K-1 (Form 1065) from a partnership.
You are not self-employed with respect to the S corp (except in regard to a self-employed health insurance deduction). You are an employee of the S corp. Your S corp is responsible for making your SEP contribution, up to 25% of the amount reported in box 5 of your W-2, and reporting the deduction on line 17 of the S corp's Form 1120S.
Since you are not self-employed (unless you have a separate self-employment business), you do not need TurboTax Self-Employed. Online TurboTax Premier is sufficient to be able to report your Schedule K-1 (Form 1120S).
A retirement contribution deduction shown on Form 1040 line 28 can only come from net profit reported on Schedule C or (positive) net income from self-employment reported with code A in box 14 of a Schedule K-1 (Form 1065) from a partnership.
You will need to upgrade to the Self-Employed online edition to report your SEP contribution.
Enter self-employed retirement in the Search box located in the upper right of the program screen. Click on Jump to self-employed retirement
Great answer -- thanks.
But, what is the case of a self-employed worker with an LLC -- sole partner. How do we treat wages or DRAW for the self-employed individual? Where do we report this?
If you are a self-employed person with a "single member LLC", the IRS treats you as a "disregarded entity" unless you elect to be treated as something else. In other words, the IRS approach is "you are treated for tax purposes just like any other self-employed person".
Self-employed persons don't send themselves a W-2. Instead, you just report your income and expenses on your tax return (Schedule C) and pay income tax and self-employment tax (Social Security and Medicare) on the "net income".
If you are making money in your self-employed business, you should be making estimated tax payments throughout the year, to avoid penalties and a big tax due at filing time. In other words, the income tax and self-employment tax is due "as the money is earned". What you pay in estimated taxes during the year gets subtracted from your total tax, basically like withholding on a W-2.
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