Where to input self employed profit sharing contributions for self-business? I could not find where to input Schedule C / Part II, item 19 (pension and profit sharing).

[zqye]

In  my 2021 tax return, turbo tax put both employee self contribution and profit sharing into Schedule 1, Part II, item 16 (Self-employed SEP, SIMPLE, and qualified plans). I don't think it is correct because profit sharing part is not subject to social security tax and medicare tax. This number should appear in Schedule C, Expense (Part II), item 19 (Pension and profit sharing plan). However, I could not find a place in Turbotax to input it even though the tax form shows the items is there, which is weird.  

[Mike9241 · Accepted solution]

Where it's reported is correct (schedule 1 line 16). you do not reduce self-employment/schedule C income for profit-sharing contributions made for yourself. the line for pension and profit sharing on schedule C is for contributions for employees. you are not an employee.

an alternative might be to elect S-Corp status - you would be an employee but would also need to take a salary. there are many other pros and cons to doing this. so consult a tax pro.  

[zqye]

Thanks a lot for your explanation!