I'm in the section where TurboTax asks you for Self Employed Retirement Plans if I contributed to a traditional individual 401k plan. I selected yes. I put $23K into elective deferrals since that's what I contributed as an employee and now would like to max out the employer's side which is 20% of net income I believe. Turbo tax has a button I can click for them to calculate what the max contribution I can make is which comes out to a little over $12K. How come now when I add that 12K to the "employer matching (profit sharing) contributions" box, it doesn't lower my taxes owed at all? This should bring it down no?
Examine TurboTax's Keogh, SEP and SIMPLE Contribution Worksheet to see the calculation of the deductible amount. Examine Form 1040 to see how the above-the-line deductions from Schedule 1, including the self-employed retirement deduction, are affecting your taxable income with and without the employer contribution.
I'm contributing to a solo 401k though. Is that a different form? Where can I find this form?
To clarify, what type of tax entity are you? S-Corp, Sole-proprietorship (schedule C) ?