I have this same issue and have in the past, but didn't pay much attention to it.. Really trying to determine if I am leaving money on the table so to speak.
When I do publication 560...
Net Business Profit = 2,032
SE Tax deduction = $144
Adjusted Net Profit = $1,888
Using 20% for max allowed from employer for contribution I get $378 that I Can contribute to SOLO 401K from business profits.
Turbo Tax is telling me that number is $1,888. Am I missing something with taking the 20% ?? I thought that was all that was allowed.
My understanding is that in my case with the numbers I have the SOLO 401K and SEP IRA from business profits are the same amount. Correct??
Any advice would be appreciated.
Thanks!
