VolvoGirl,
As a self employed worker, I can contribute both as an employee and and as employer. And both employee and employer contributions are tax -deductible.
Turbo Tax even prompts you to enter both amounts in their retirement contributions UI. They label it as:
- Individual 401(k) (the 23K max for 2024)
- Employer Match
The amount entered as employer match has no effect at all in TurboTax. It should be included in Schedule 1 Line 16 per the IRS. I don't know if this is a TurboTax limitation or if there is some undocumented way to do this via their interface.
I can work around by separately adding it as a business expense - but I am not sure if that's the best way to do this. (and when I do that, the tax amount updates correctly).
