For a CASH basis S-Corp, are SEP contributions deducted from the 1120S Tax Return in the year the contribution is made, or in the year the contribution is for?
For Example, an employee's W2 shows $20,000 wages for 2019. The SEP contribution of $5,000 or 25% is not made until Feb 2020 after the year ended. Is the $5,000 deducted on the 2019 Tax Return or on the 2020 tax return?
