I reviewed your file and made the following observations. First, if you're self-employed and making employer contributions to your Solo 401(k), these are deductible as business expenses on Schedule C . However, the total contributions (employee and employer) are also shown on Schedule 1 as part of the changes to income. This is the way the IRS categorizes the contributions, health insurance, and 1/2 of self-employment tax.
This is confusing at first, but after looking at it. You were given the proper deduction for your solo 401K contribution. Here's the breakdown.
Look at Schedule C, Box 4 and compare this with Line 10. Schedule 1. It's the same. Now look at Schedule C and Line 5. This is also reported in Lines 15–17 in Schedule 1. These are the same. Now look at the bottom line in Schedule C and compare it with the bottom line in Schedule 1. It's the same.
To summarize all your business income, 1/2 self-employment tax, contributions to retirement plans, and health insurance is itemized separately on Schedule 1 rather than just reporting your total net income amount in line 3 Schedule 1. This is the way the IRS categorizes this type of reporting and it's confusing at best but you still must love the tax code and it's nuances. All your income and contributions are properly accounted for.
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