If you input your SEP contribution on your 2021 tax return, it is designated correctly for your taxes. If you did not include it on your tax return, you will want to amend your 2021 return because it is an allowable deduction of up to 25% of your self-employment income less 1/2 of your self-employment tax.
To maximize your SEP contribution and enter the deduction for 2022 you can follow these steps in TurboTax Online:
- Within your tax return, click on Wages & Income in the black menu bar on the left
- Scroll down to Other Business Situations and click Show more
- Click Start for Self-employment Retirement Plans
- Answer the questions about individual 401(k) plans and answer Yes on the Keogh, SEP, and SIMPLE Contributions screen
- Click the Maximize box for SEP and Continue
- If you want to reduce the amount of income the deduction is calculated on you can adjust that on this screen, if not leave it blank and Continue
- The Your Retirement Contributions screen tells you the amount to contribute before 4/18/23 (for 2022 tax returns)
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