Does a contribution to My SEP IRA reduce my self employment taxes in 2021

[Tom in Carolina]

I am self employed as a sole proprietorship and the only employee. When I enter a contribution on line 19 of schedule C (Pension + Profit Sharing Plans) it changes the Federal Tax Due, and other amounts on Form 1040

I have read that a contribution to a  SEP IRA Does Not reduce self-employment tax. But in this example it does.

Please help - thanks in advance,

Tom

[KrisD15]

It is a deduction against your personal income on Schedule 1 line 16. 

[Tom in Carolina]

Hey KrisD15

Thanks for your help, I just found out about this deduction in the past few days.

Would the answer be the same for other Self Employment Retirement Plans - such as: an IRA, a Simple IRA, etc.  ?

Many thanks for sharing your expertise.  Regards,

Tom

[AliciaP1]

That's correct.  The only thing that reduces SE tax is reducing specific SE income.

[Tom in Carolina]

Thanks Alicia !