How Can I Calculate the Adjustment Amount on Form Keogh, Sep, and Simple Contribution Worksheet for Notary

[ClareC1]

Hi there, I've already gone through the Self-Employment Screen in the Business Section and indicated that I am a Notary there so we're good on Sch C, and TT told me that I owe no SE Tax because I put in my Net Income, but for the purposes of calculating the maximum amount allowed to put in my 401(k), I have to make an adjustment.  I remember last year that someone walked me through it.  The number belongs on Part II, 1b and 1c.  On line 2a, it is listing a deductible portion of self-employment tax, which I guess is the part that has to be adjusted since I have no self-employment tax.  I did this last year but can't remember how I did it.  Any help is appreciated.

[JohnB5677]

Yes, you can calculate your maximum 401-K contribution for Self-Employed in TurboTax.

Go to:

1. Wages & Income
2. Scroll to Other Business Situations
3. Select Self-Employment Retirement plans
4. Continue through the interview to Individual and Roth 401(k) Plans
5. Check the box for Maximum Contribution to Individual 401(k)

I'm not sure what you're referring to about self-employment tax.

If this does not completely answer your question, please contact us again and provide some additional details.

[ClareCA]

Thanks for your help, but that's not my question.  My questions is regarding how to figure out how much adjustment to make on that worksheet for those that don't pay self-employment tax since that worksheet takes into account self-employment tax when figuring out the maximum contribution.  That worksheet is related to those boxes when you hit "forms" from the "step-by-step." For those who don't pay self-employment tax, like notaries, you have to make an adjustment.