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Level 1
posted Jun 6, 2019 5:45:43 AM

I e-filed yesterday, but I want to contribute to our Sep ira - how can I do that? Do I file an amended return? If so, how do I do that?

Since we ended up owing $3700 I'd much rather put that $$ in our Sep Ira and lessen our tax bill...

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1 Best answer
Level 15
Jun 6, 2019 5:45:44 AM

Yes, if by April 18, 2017 you make a contribution to a SEP-IRA for the 2016 tax year, you can amend your 2016 tax return to include it.  An IRA contribution is (potentially) a deduction, not a tax credit, so the amount that it reduces your tax bill will be determine by your marginal tax rate on that amount of income.  If your marginal tax rate is 25%, you would have to make a SEP contribution of $14,800 to eliminate your tax bill.  A SEP contribution of $14,800 would require a net profit from self-employment of something like $79,625.

5 Replies
Level 15
Jun 6, 2019 5:45:44 AM

Yes, if by April 18, 2017 you make a contribution to a SEP-IRA for the 2016 tax year, you can amend your 2016 tax return to include it.  An IRA contribution is (potentially) a deduction, not a tax credit, so the amount that it reduces your tax bill will be determine by your marginal tax rate on that amount of income.  If your marginal tax rate is 25%, you would have to make a SEP contribution of $14,800 to eliminate your tax bill.  A SEP contribution of $14,800 would require a net profit from self-employment of something like $79,625.

Level 3
Apr 13, 2022 6:42:47 AM

Is this true of the 2021 tax year -- that I can file an amended return and make my SEP self-employed contribution by April 18?

Level 15
Apr 13, 2022 6:56:19 AM

Yes it is. But be sure to fund the plan no later than April 18.

New Member
Jun 26, 2023 9:26:22 AM

Can the missed, late contribution and tax amendment also be made by the extension date of Oct 16?

Level 15
Jun 26, 2023 10:30:30 AM

did you file an extention prior to april 18 that was accepted?