No, SEP contributions for a sole proprietor are a deduction from your total income, not from your self-employment income. This means your Schedule C net profit remains the same, but your taxable income is reduced.
This is where you enter SEP contributions for a sole proprietor :
- Select Federal on the left side menu.
- Under Wages & Income, scroll down to Other Business Situations, expand the section.
- Find Self-Employment Retirement Plans, select Start or Revisit to the right.
- Answer the first question No and the second question Yes.
- On the screen Your Contributions, enter your information in the appropriate box.
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