@crumbster wrote:
I have 0 contribution to the SEP at this time. I have a max contribution to my traditional IRA. Again if I tell the software to max my SEP contribution, it Lowers my amount due. If I tell it to just add 3K it raises the amount of taxes due So if it was excess wouldn't that happen with both scenarios ?
That is entirely possible and not unexpected if $3K is more that the maximum amount that TurboTax calculated that yiu are allowed to contribution and the excess is subject to penalty on a 5329 form so your tax increases.
When TurboTax "maximizes" the contribution then it applies the maximum *allowable* amount which can be much less than $3K and that will reduce your taxable income.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
