My wife and I own an S-corp and, in 2018, we paid ourselves W2 income of $12,000 each (we have no employees). We will generate K1's to pass through the net profits to our personal return (married filing jointly). We would like to make our 401k contributions of $12,000 each prior to the April 15th deadline. However, I'm not seeing how these payments will be properly deducted from our income on our returns. I've experimented with entering these deductions in TurboTax Deluxe 2018 (First @ Federal Taxes > Retirements and Investment > Retirement Savings Contribution Credit and Second @ Federal Taxes > Wages & Income > Business Items > Business Deductions and Credits > Self Employed Retirement Plans) and none of the entries seem to be appropriately reducing our income / tax liability. How do we enter the $24,000 combined contributions in TurboTax such that they effectively reduce our income?
Please let me know as soon as possible. Thank you!
Marc
