I am seeing a slightly different issue...TurbotTax Premiere is correctly tracking employer contributions to Solo 401K for the business owner. However, it is not calculating the employer contribution for a W2 employee as a business expense, which in this case is a spouse. TurboTax allows the entries to be entered for the spouse (in this case filing jointly) but it does not associate the W2 income reported for the spouse with the sole-proprietor as the employer.
As I understand tax laws, a spouse who is a w2 employee of the sole-proprietor and does not have employment elsewhere (no other W2 income) can contribute to the sole-proprietor's Solo 401K. These contributions have to be within contribution limits.
Is this another "unsupported calculation" in TT? If so, where is this documented and what is the work-around? Do I need to override the calculation and enter the correct figure so it shows up as a business expense?
Larry
