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Level 1
posted Jan 31, 2022 8:36:04 PM

Solo 401k contributions for self employed individual does not get transferred to NJ state business

I see NJ allows to deduct but even though Turbotax shows the contribution in Federal it does not transfer to NJ state.  In Federal, it shows contribution under Keogh plan, NJ form allows deduction for solo 401K.

 

0 4 983
4 Replies
Expert Alumni
Feb 1, 2022 1:27:15 PM

Your solo 401k contributions should have transferred to your New Jersey return and shown as deductible.  So I just want to make sure that you entered your solo 401k contributions in the correct place.

 

Go to this link and scroll down to the excellent list of instructions from @JulieC14 to make sure that you have entered your contributions in the correct section to have them register with the New Jersey return.

Level 1
Feb 2, 2022 6:42:22 AM

Thanks but it does not look like its copying from Fed to State. See attached screenshot for state it remains blank.

 

 

Expert Alumni
Feb 2, 2022 2:46:39 PM

Contribution to solo 401(k) is entered on your NJ state return as an adjustment.

Follow the steps below to make the adjustment:

 

Within Your State Returns:

  1. Click Update next to Adjustments section
  2. Proceed to Your Business Summary screen, click Edit
  3. Under Business and Farm Income-Adjustments, enter the amount in the box next to Qualified contributions to a self-employed 401(k) plan, then Continue

 

@vrits

Level 1
Feb 2, 2022 3:27:38 PM

Thank you, yes I can do that. However Turbotax says all information from Federal is carried over to state. Should I be concerned of anything else too which even though entered on Federal still needs to be entered manually again on State? This deduction can have big impact on State taxes and maybe there are others too.