Self employed

This is not an error. The SEP IRA contribution limit for a self-employed individual is 20% of SE net earnings (net profit minus half of self-employment tax), not gross income. SEP contributions are capped at $70,000 for 2025. If your net income supports that amount, TurboTax will correctly allow it. 

As long as your income and expenses are entered correctly, the calculation is accurate. Follow these steps in this article to ensure you are entering the information correctly:

1. Open or continue your return in TurboTax.
2. Navigate to the SEP IRA contributions section:
   • TurboTax Online/Mobile: Go to SEP IRA contributions.
   • TurboTax Desktop: Search for and select SEP IRA contributions (use this exact phrase, including the s on contributions).
3. On the Self-Employed Retirement Plans screen, answer Yes to Did you make a 2025 self-employed retirement plan contribution?
4. 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 (such as 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.
5. On the next screen, select Yes to Do you want to make a contribution to a Keogh, SEP or SIMPLE retirement plan for 2025?
6. Answer any additional questions until you get to the Your Contributions screen, where you’ll be able to input your SEP IRA contributions.