Can I enter Self-Employed SEP IRA contributions in TurboTax Deluxe?

[RobertB4444]

You need to not enter it into the SEP contribution section and enter it directly into the associated business' section.  Pay attention to the amounts - if you're associating it with one business you are limited to 20% of that business' income instead of your overall self-employment income.  Enter it as an expense directly into the associated business labeling it as what it is.

@dc20222023 

[dc20222023]

@RobertB4444 Oh that's smart. so schedule C Part II (line 19? I know SEP IRA is not exactly profit-sharing plan but similar) will be the only place in my tax return that mentions SEP IRA.

[AbrahamT]

That is correct.

[VolvoGirl]

Schedule C line 19 is for your employees pension plans not yours.  

Per the IRS:

Plan compensation for a self-employed individual

To calculate your plan compensation, you reduce your net earnings from self-employment by:

• the deductible portion of your SE tax from your Form 1040 return, Schedule 1, on the line for deductible part of self-employment tax, and
• the amount of your own (not your employees’) retirement plan contribution from your Form 1040 return, Schedule 1, on the line for self-employed SEP, SIMPLE, and qualified plans.

You use your plan compensation to calculate the amount of your own contribution/deduction. Note that your plan compensation and the amount of your own plan contribution/deduction depend on each other - to compute one, you need the other (this is a circular calculation). One way to do this is to use a reduced plan contribution rate. You can use the Table and Worksheets for the Self-Employed (Publication 560) to find the reduced plan contribution rate to calculate the plan contribution and deduction for yourself.

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