DavidD66
Expert Alumni

Get your taxes done using TurboTax

You can contribute up to the lessor or 25% of your self-employed "compensation", up to $61,000 for 2022.  Your self-employed compensation is is your net earnings from self-employment, less the following deductions:

 

  • one-half of your self-employment tax and
  • contributions to your own SEP-IRA.

So, if your net earnings were negative, you cannot contribute to your SEP.

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