It is not clear why your tax liability decreased by only $1,000 after maxing out your 401(k) contribution. Have you entered your 401(k) in the manner recommended by TurboTax? Those steps are as follows:
- In the Search bar, enter self-employed retirement plans (include the hyphen)
- Click on the jump-to link
- Answer Yes on the screen Did you make a 2021 self-employed retirement plan contribution?
- Answer Yes on the screen Did you contribute to an Individual or Roth 401(k) plan?
- On the next screen, enter your contributions
- If you have not made all your contributions for the tax year and would like TurboTax to calculate your maximum contributions for the year, check the box next to Maximize Contribution to Individual 401(k).
Continue through the pages until you reach Your Retirement Contributions. This page will show a summary of your contributions. This page will also show whether you have an excess contribution. It will also show whether you still have time to contribute funds to your plan.
In addition to the above, have you entered your estimated tax payments or other tax withholding on your return?
@futurestrader39
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