Skip to main content
TurboTax
Community
TurboTax
TurboTax
katherine-sweetman
Level 2
January 19, 2025
Solved

SEP IRA Contributions are not deducted from Tax bill in TurboTax?

No text available
    dmertzAnswer
    Level 15
    January 19, 2025

    Are you self-employed?  If so, your maximum SEP contribution is determined from your net profit from self-employment.  No net profit, no permissible SEP contribution.

     

    If the SEP contribution was made by an employer from which you receive a W-2, the employer, not you, gets the deduction.

     

    View in thread

    3 replies

    dmertzAnswer
    Level 15
    January 19, 2025

    Are you self-employed?  If so, your maximum SEP contribution is determined from your net profit from self-employment.  No net profit, no permissible SEP contribution.

     

    If the SEP contribution was made by an employer from which you receive a W-2, the employer, not you, gets the deduction.

     

    katherine-sweetmanAuthor
    Level 2
    January 20, 2025

    Yes net profit. Yes self employed. The contribution not being subtracted from tax bill. 

    dmertz
    Level 15
    January 20, 2025

    Expert Reviewed

    A SEP contribution is an above-the-line deduction on Schedule 1 that reduces AGI.  It does not subtract  directly from your tax liability.

     

    Examine TurboTax's Keogh, SEP and SIMPLE Contribution Worksheet to see the calculation of your self-employed retirement deduction.

    TurboTax flag icon

    Unlock tailored help options in your account

    Create an account
    TurboTax Expert Assist
    TurboTax Expert

    Get answers to all your tax questions

    Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

    Explore your options
    Terms & ConditionsAccessibility statement
    Sitemap
    Intuit
    TurboTax Credit Karma QuickBooks MailChimp

    ©1997-2026 Intuit, Inc. All rights reserved.
    Intuit, QuickBooks, QB, TurboTax, Credit Karma, and Mailchimp are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

    Security Certification of the TurboTax Online application has been performed by C-Level Security.

    By accessing and using this page you agree to the Terms of Use.

    About Cookies Manage cookies

    TRUSTe nResult Certified e-File C-Level Security Certification
    Intuit
    TurboTax Credit Karma QuickBooks MailChimp

    © 2026 Intuit Canada ULC or its affiliated companies. All rights reserved. Intuit, QuickBooks, QB, TurboTax and ProFile are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

    Copyright © Intuit Canada ULC, 2026. All rights reserved.

    About Cookies Manage cookies

    Intuit
    TurboTax Credit Karma QuickBooks MailChimp

    © 2026, Entreprises Intuit Canada ULC ou ses sociétés affiliées. Tous droits réservés. Intuit, QuickBooks, QB, TurboImpôt et ProFile sont des marques déposées d’Intuit Inc. Les modalités, prix, fonctions et options de service et de soutien peuvent changer sans préavis.

    © 2026, Entreprises Intuit Canada ULC. Tous droits réservés.

    À propos des témoins Gérer les témoins