I tried to set up my SEP IRA contribution for my wife's 1099 income. All the information I found find by googling says 25% of net income (i.e. after cost and self employment tax deducted). The remaining net income (after removing all business cost) is about $32K. Removing self employment tax by multiplying it with 92.35%. That's about $29.5K. 25% of it is close to $7.5K. But Turbo only calculated $5.5K, although I selected "maximize it". Why?
Thanks
