S-Corp : where to report employee solo 401k contributions

[anothertaxuser]

Hi,

I started my S-Corp LLC last year (2024) and contributed towards a solo 401-k. This is captured correctly in W2 and payroll. I am filing my taxes with Turbotax Business. When I try to enter the deductions section, I see 2 sections:

• Salaries and wages paid - Here I entered the wages (box 1) reported in W2, which does not include employee retirement contributions
• Retirement Plan Contributions - Here I entered the total employer retirement contributions (sep-ira + solo 401k) amount.

I see no other sections where I can capture the employee retirement contributions. This makes my balance sheet report incorrect higher income amount even though my actuals are lower. How do I enter this amount correctly for tax filing?

[RobertB4444]

The employee contributions are part of the gross salary that you paid.  When you entered the gross salary that should have taken care of the employee contributions.  If you had entered them additionally on your accounting program before coming to TurboTax then that is what you need to fix.  TurboTax is correctly not giving you a space to enter something that is not a deduction for your business.

@anothertaxuser 

[anothertaxuser]

Thanks Robert for your response. Making sure I understand your response correctly, 

In the deductions section for my business filing, I entered the "Salaries and Wages paid". This amount should be the gross wages including employee retirement contributions (box 3 amount from W2) and not the box 1 wages. For example, my box 3 wages is $100000 and my box 1 wages is $80000, then I should enter $100000 into my "Salaries and Wages paid" section of business filing. Is this correct?

[ThomasM125]

You are correct, the wages deducted on your S Corporation would be the gross wages, not the gross wages less the employee retirement plan contributions as listed in box 1 on the W-2.

[anothertaxuser]

Thanks for clarifying. That helps with my situation.