Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

It is based on net earnings minus one half of your self employment tax.

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

https://www.irs.gov/retirement-plans/how-much-can-i-contribute-to-my-self-employed-sep-plan-if-i-par...

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

It shows you added the LIVE expert help feature for a higher cost. Ask the expert. How to connect to an expert in Turbo Tax Live

https://ttlc.intuit.com/community/expert-review/help/how-do-i-connect-with-a-tax-expert-in-turbotax-...

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Neither. For a sole-proprietor it's 20% of net earnings. Net earnings are net profit minus the deductible portion of self-employment taxes.

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Thank you. Do capital gains play into the picture at all? In other words, if I have substantial capital gains, can a portion of those gains add to the amount I can contribute to a SEP?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

No. The calculation depends only on your business income.

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Got it. Thank you again. One last thing- if I exceed the limit, what happens to the excess?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Unless corrected, excess SEP contributions are subject to a 10% excess-contribution penalty reported on Form 5330. TurboTax does not support Form 5330.

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Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

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Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

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Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

Are contributions to a Sep Ira for freelancers based on 25% of gross income or 25% of net income?

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