I received a 1099-NEC for consulting work. I assume that I need to report that income in full or the IRS will not be able to match the 1099 to my tax return. But I contributed (as the employee) $30K to a SEP 401K (I am over 50 yrs old). Yet, I cannot find where to enter that deduction. And yes, my earnings were over $30K.
I did find a section in deductions for it, but based on the limits it is giving me, I'm quite sure that if is only for any employer deduction that I may make.
Despite lots of research, I cannot figure out where to enter the $30K employee deduction to reduce the tax liability for my self employment income.
I think you mean a self-employed 401(k). "SEP" in IRS documentation refers to an IRA-based plan.
The section for self-employed retirement plans is under in the Wages & Income section Business Deductions and Credits. Nothing in the Deductions & Credits section of TurboTax relates to self-employed retirement.
I think you mean a self-employed 401(k). "SEP" in IRS documentation refers to an IRA-based plan.
The section for self-employed retirement plans is under in the Wages & Income section Business Deductions and Credits. Nothing in the Deductions & Credits section of TurboTax relates to self-employed retirement.
Thank your for taking the time to reply,
You are correct, I was referring to the self employment 401K.
I don't see a section entitled to Business Deductions and Credits in Wages and Income. The closest to that is called Self-Employment Income and Expenses; right after "Job (w2). That is where I listed the income from the 1099-NEC, but I cannot find where to take the 401k deduction.
Various version of TurboTax name things differently. What version of TurboTax are you using?
I am using the web site.
But I may have found how to do it.
I do have a section there called Self Employment Retirement Plans and then within that entered the $30K in as an Individual 401K contribution.
Sound right?