I am trying to reduce my Federal Taxes by increasing SEP IRA contributions. I am taking a standard deduction, married filing jointly, and I am a sole proprietor with no employees. I have contributed $6,000 into my SEP so far for 2020 and have $84,000 of income from the business. I currently have $2,800 in Federal Taxes.
I have tried increasing my SEP IRA contributions by another $5,000 but it doesn't change my Federal Taxes Due. Does anyone know why increasing my SEP IRA contributions isn't lowering my taxes?
Thanks for your help.
