Self employed

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Upon reviewing your file, it appears that when entering a greater SEP contribution, your refund amount goes up.  This is what we would expect to see. 

The amount you contribute to your SEP IRA is reported on your tax return as an adjustment to income. This deduction reduces your total income, which in turn reduces your taxable income for the year, thus increasing your refund amount due.

First, make sure that all updates have been run in your Turbotax program.  

Open TurboTax and select Check for Updates from the Online menu near the top. If there are any updates, you'll be prompted to download them.

• Use a wired, high-speed connection when updating, both to save time and minimize data corruption.
• If your connection drops in the middle of the update, try again; it should pick up where it left off.
• If you're having trouble updating on your PC, try a manual update.

If you find you need to manually update your TurboTax for Windows Software, here are some instructions to get started.

TurboTax 2023 Individual

If you're having trouble updating your TurboTax 2023 for Windows Individual software using the "Check for Updates" method, here are instructions for how you can get the latest federal program update:

1. Close TurboTax and all other programs except this browser window.
2. Select this link to download the 264 MB update.
3. Save the update file to your Windows desktop.
4. Double-click the update file w_perrelsuperpatch... on your desktop to install the manual update.

We don't offer manual updates for TurboTax state software. If you need to update your state, here are your options.

To properly enter your SEP contribution, make sure you've entered your self-employed income. This allows TurboTax to calculate the maximum amount you're allowed to contribute to your SEP IRA.

Once your self-employment income is entered:

1. Sign in to your TurboTax account.
2. Open your return.
3. Select Search and enter SEP IRA contributions (use this exact phrase, including the s on contributions).
4. Select the Jump to link in the search results.
5. On the Self-Employed Retirement Plans screen, answer Yes to Did you make a 2023 self-employed retirement plan contribution?
6. Depending on if you contributed, select Yes or No to the question Did you contribute to an Individual or Roth 401(k) plan?
   • If you get the message Self-Employed Retirement Plans are only for self-employed individuals (i.e., those filing Schedules, C, F, or K-1), this means that you haven't entered your self-employed income yet. Once you've entered your income, you can come back to these instructions.
7. On the next screen, select Yes to Do you want to make a contribution to a Keogh, SEP or SIMPLE retirement plan for 2023?
8. Answer any additional questions until you get to the Your Contributions screen, where you’ll be able to input your SEP IRA contributions.

If you are self-employed, you can contribute to a Simplified Employee Pension (SEP) IRA as much as the lesser of 25% of your net earnings or up to $66,000 for 2023, and your contributions may be tax-deductible as a business expense if you file and extension by April 15 and contribute before the October 16th extension ...Oct 16, 2023

Click here for information on entering SEP contributions into TurboTax.

Click here for end of year retirement tips.