SEP Contributions not being added to SE Earnings Worksheet

[CajunD]

Hi Folks,

I'm comparing my 2022 and 2023 Turbo Tax information, and have noticed that on line 4a(3) of the SE Earnings Wks (Forms Mode) the SEP Contribution amounts are not appearing in 2023 as they have in 2022. I'm wondering what the condition is that causes these to be included into the math. The values do appear on the Schedule K-1 Worksheet, but currently aren't considered SE income for the partners.

Thanks for any ideas you all may have.

[CajunD]

BTW, adding it via the form interface is a trivial matter, I guess I am concerned that the software is behaving differently, or I have missed a checkbox somewhere that triggered this calculation. I have read that owners can't deduct this contribution, which would make sense that is it included in the SE total.

Thanks again!

[DianeW777]

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information.  We would be able to view the situation. Here are the instructions: 

TurboTax Online:

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. 

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

[CajunD]

Sure, I appreciate the time you are spending on it.

1167917

Thanks again!

[DianeW777]

I have the file, could you put a note here for the state (NY, NJ, etc).  Then please @ me also so that I am alerted.  

@CajunD 

[CajunD]

@DianeW777 I'm in Virginia.

Thanks again!

[DianeW777]

Do you have any other states in your tax return?  It's important for me to view the file.

@CajunD 

[CajunD]

@DianeW777 - Nope, just VA.

Thanks.

[DianeW777]

I'd like to try without the VA return if possible.  If it isn't too much trouble you could delete the state return and then resend the token.  If you prefer not to do that I can try a sample test but I may not be able to recreate your scenario exactly.

@CajunD 

[CajunD]

@DianeW777 Thank you, I don't see an obvious way to remove the state, and honesty, I am not comfortable deleting things that are already completed. This isn't related to the state return, just the federal and the generated K-1's. If this is limiting your ability to open the file, then it sounds like a technical issue with the software. I can take this matter to support, as my situation is simple, and this feels like a bug.

What I don't fully understand, and what TurboTax doesn't explain very well, is that once you have the math complete on the SEP-IRA Contribution Summary, there are two buttons, "Deduct SEP", or "Do Not Deduct". This is not an expense, and with an LLC, it's not affecting anything on the business side. However, regardless of either one being selected, the amount is not added to SE Earnings Worksheet (Schedule K, Line 14a), as has been the case in past years.

Manually entering the total contribution on the SE Earnings Worksheet fixes the math on the K-1's.

Thanks again.