My 2020 self employment gross/total income will be approx $44K
My 2020 total business expenses will be approx $10K
Giving a net income of approx $34K
Why does SE TurboTax tell me that I can deduct a maximum $6,346 SEP contribution?
IRS states: Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $57,000 (for 2020 and $56,000 for 2019).
Which mean I should be able to contribute $34K * 0.25 = $8,500
Why the $2,154 difference in your calculation?
