Running an LLC with two partners. In TT for business (1065) I enter SEP contribution, that creates an entry in 13 of K1 (with R) as the code. So far so good. In TT home and business, for my personal tax, I enter the SEP contribution, and while it reduces income taxable income, it doesn't reduce SS or Medicare taxes. Should these not be reduced too?
I first was expecting the TT for business (1065) to reduce the ordinary business income (line 1) and net self employment earnings distribution (14 code A) for the SEP contribution, which would then flow correctly in TT home and business (I wouldn't add a sep in the personal return as it would have already been subtracted from the K1).
Help !!! Thanks.
