Thanks for that, dmertz. I hadn't know where to find the Keough/SEP worksheet (it's in the group of documents right after 1099s in Forms).
Anyway, what the sheet shows now is that all of the net profit is being allowed due to the "catch up" provision. It plugs a figure in—$19,500—that it labels "Allowable catch-up contributions." And apparently since the net profit of the business is less than that amount, it allows the whole net profit to be deducted (as long of course as it is all contributed to the 401(k). by April 15).
Instructions indicate this is only possible at age 65.
In principle at least I don't think this is anything new. Years ago in another life, I recall helping some older professors use catch up provisions to reduce their taxes by contributing more to their retirement funds.
That was then and this is now, though. Did something change from last year to this year? Because last year, TT kept me to the 25% limit.
