Hi Dubstar 23- I am having the same problem as yourself. Just posted this. I am only allowed to deduct $30,500 even though my wife put $76,500 into her Solo 401K. It is not allowing me to make the employer contribution just the employee contribution. Maybe there is a question down the line in the process where they ask for the "employer" portion? That is my question Here is my post.
According to my understanding of the IRS code for Solo 401(k), I should be able to deduct $30,500 ($23,000+ $7,500 my wife is over 50) as the "employee" of the Solo 401K. Secondly, I should be able to deduct another 25% of "compensation" as the "employer." According to the IRS, the maximum deduction is $69,000 + $7,500=$76,500 for 2024. My wife contributed this amount, is self employed, over 50 and her income level is high enough to justify this additional 25% deduction. Turbo Tax is limiting my deduction to $30,500. I have stopped at this point in the return. Does Turbo Tax at a later part in the process ask me for the "employer" deduction?? Will this total amount be on Schedule 1, Part II, line 16? Surely, TT will let us deduct more than $30,500 if there is sufficient income to allow for the further 25% deduction? Just wondering if this is later in the process or there is a glitch in the software, if so, I will take my business elsewhere as this is a large tax difference. Thanks for the help out there in advance.
