401K self employed contributions

[artrilla]

I already contributed X amount during 2022, and was planning to contribute an extra "Y" amount.

I'm trying to fill the info in Turbo Tax to simulate how my federal tax due changes with different amounts of additional contributions. But no matter what I do, the federal tax due remains exactly the same! How? Am I already over the maximum contribution and that's why no additional contribution will reduce the tax due? 

The weird thing is that I also tried reducing the contribution (removed the employer match (profit sharing) and again nothing changes! still the very same tax due. What's going on??

I completely reset everything by removing the form (tools => delete a form => Keogh/SEP/SIMPLE Contribution Worksheet), so I'm sure I'm starting clean every time. 

[AmyC]

If your only tax liability is the self-employment tax, then any contribution changes will not affect your tax due. Take a look at your 1040. Contributions reduce the taxable income. Does line 16 have any tax? Line 17 is your self-employment tax.

To see your forms:

• In desktop, switch to Forms Mode. 
• For online, see How do I preview my TurboTax Online return before filing?

[artrilla]

Yes, line 16 has a bunch of tax already (filing jointly)

Line 17 is currently empty.

[artrilla]

Now I think I know what's going on.

When I click on "Maximize Contribution to Individual 401(k)", it is already assuming I will contribute the maximum, but it doesn't really say anywhere the difference vs. what I already contributed. 

on form 1040, Part II, Adjustments to income, line 16Self-employed SEP, SIMPLE, and qualified plans, it shows "X" more than what I actually contributed so far. So I'm guessing I should contribute X - actual contribution?

Is Turbo tax considering the income to estimate that maximum? (As there are some rules around that)

[AliciaP1]

Yes, once you click maximize, TurboTax uses the appropriate income to calculate your maximum allowable contribution.  If you have already contributed a portion of that, you need to deduct that from the total TurboTax gives you in order to determine what you have left to contribute.

@artrilla 

[artrilla]

Thanks so much Alicia!

last question, what would be the deadline for those additional contributions?

I live in california, so I understand the deadline was extended until Oct 16th (source: https://www.irs.gov/newsroom/irs-may-15-tax-deadline-extended-to-oct-16-for-disaster-area-taxpayers-...)

However, it is not clear to me if that deadline applies as both employer (profit sharing) and employee.

[AliciaP1]

In that instance, if your business address is affected by the disasters the deadline should be pushed to October 16th, but if it's not your deadline is still 4/18/23.

Per the IRS (in the notice from your link):

Among other things, this means that eligible taxpayers will also have until Oct. 16 to make 2022 contributions to their IRAs and health savings accounts.  (This will include all retirement contributions that originally had the 4/18/23 deadline)

@artrilla