I am struggling with Turbotax and entering Solo 401(k) deductions for myself (self-employed owner) and my spouse (hired as a W-2 employee). We are both over age 50.
Spouse was paid $30K of which $24K was elected deferral into her 401(k) account, net pay $6K. Her W-2 was entered into TT as typical.
Questions:
1) Her election is shown in her W-2 entry, but to reduce my overall taxable income, I still need to show that i paid $24K for her in TT. I put this under Business > Business Income and Expenses > Employee Expenses > Pension Plan. I just created a line entry for this. I couldn't find anywhere else to record the money I paid to her 401(k). Is this the right place?
2) For my own personal $24K elective 401(k) contribution I put the entry on the Business > Business Income and Expenses > Less Common... > Self-Employed Retirement page as an elective deferral. But I also see here a column for my spouses elections, although entering an amount here does not affect taxes? I am confused how to use the column for my spouse.
3) For the Employer profit-share contribution, I am not sure at all how to handle this for myself or spouse. If I check the box on the same screen as #2 above for myself, taxes are reduced, so it seems like it is calculating the maximum employer contribution for me. But checking the box for my spouse does nothing? Even entering a fixed amount does not change the tax due?
So with TT not changing the tax due depending on where i enter these values, I am confused on how this Individual and Roth 401(k) Plans screen works and where are the appropriate entries for my and my spouses elective and employer matching contributions. This gives me little confidence I am putting these values in the right place and getting the tax deduction and 401(k) contributions I want.
