How do I get to Schedule C Line 19 to enter a business deduction for contributions made to a SIMPLE retirement plan? (I am a self-employed sole proprietor)

[hawg0313]

Yes, I know. I have already done that. That is not actually my question. I have already entered my Self Employed SIMPLE Contributions. And Turbo Tax has already correctly poplulated that total amount to the 1040, line 28.

My question is - How do I navigate to Employee Pension Plan under Business Expenses. For some reason, it is not an available option to me.

[MinhT]

To see Employee Pension Plan under Less Common Expenses, you have to indicate in the profile of your business that you have employees (see screenshot 1 added to my main answer). If you answered that you do not have employees, you have to edit your answer. Then you will see the Employee Pension Plan category (see screenshot 2 added to my main answer),

[badriv]

Hi, I do not see this option under less common expenses. I have been trying for a while, and a Turbotax rep has been looking as well. This line item option (line 19, "Pension and profit-sharing plans") simply does not show up. I'm using the TurboTAx Self-Employed package.

[VolvoGirl]

@badriv   Is this for your own plan or for your employees?  It it is for yourself it doesn't go on line 19.  That is only for plans for your employees.  Your own plan goes on Schedule1 line 16 which goes to 1040 line 10.  If you have employees, did you go to the business profile and say YES to have employees?

For  yourself.......

Go to Search and try entering "self-employed retirement" to get the Jump To link

Or go to
Federal
Income and Expenses and then scrolling down to the Other Business Situations section.
Click Start or Update beside Self-Employed Retirement Plans.

[badriv]

@VolvoGirl Thanks. I got help from TurboTax. 

Essentially, for this option to show up, you need to indicate that you have employees in the "general info" tab of your business. Only after you do this, "Pension and profit-sharing" plans will start showing up as an option under "Other expenses"

Note that

1. You need to get a formal pension plan and / or a profit sharing plan set up, and file 550 for it

2. You can do this even if you are running a sole proprietorship

[VolvoGirl]

Yes I did say you you have to say yes you have employees.  So you do pay employees and give them a W2?  Not just paying them as subcontractors on a 1099NEC.

[ddc0626]

Where do you see that you can take this employer contribution (to yourself) as a Schedule C deduction?  "2. You can do this even if you are running a sole proprietorship"

The link you posted earlier in the thread is broken.  Everything I've seen online, including in the IRS guidance, indicates you cannot take two deductions for the same single contribution, but I'd love to learn if there's a way.

[ddc0626]

From the 2023 Schedule C instructions: www.irs.gov/instructions/i1040sc

"Line 19: Enter your deduction for the contributions you made for the benefit of your employees to a pension, profit-sharing, or annuity plan (including SEP, SIMPLE, and SARSEP plans described in Pub. 560). If the plan included you as a self-employed person, enter the contributions made as an employer on your behalf on Schedule 1 (Form 1040), line 16, not on Schedule C."

[ddc0626]

From Publication 560: 

"Remember that sole proprietors and partners can't deduct as a business expense contributions made to a SEP for themselves, only those made for their common-law employees."