I'm an S Corp owner wanting to report a SEP IRA contribution. The "Self-Employed Retirement Plans" page's continue btn only returns me to summary. What am I missing?

[ezqferg]

So for a single member S-Corp, is the maximum SEP contribution equivalent to 25% of Line 21 of 1120-S or Line 7 (25% of compensation to myself as an officer)? Thank you

[dmertz]

25% of the amount on Form 1120-S line 7 (assuming that you are the only officer) or whatever portion of line 7 pertains to you (if there are multiple officers including yourself).  The amount on line 21 has no bearing on the amount of a SEP contribution that the S-corp can make on anyone's behalf.

[IHaveABigQuestion]

@dmertz  TurboTax is once again trying to force me to upgrade from Premier to Self-Employed. But like you said, "Except for the purpose of a self-employed health insurance deduction, you are not self-employed, you are an employee of your S-corp." I have been using Turbo Tax Premier for almost 10 years and just last year it started trying to force an upgrade even though I needed no extra tax forms. I'm not doing anything different. A Turbo Tax employee confirmed then that I did not need any of the forms from Self-Employed but did not know how to fix it. How do I convince TurboTax not to force this upgrade each year? They literally advertise Premier as being for S Corp owners. Any ideas how to fix this glitch? Here's the error message even though I am doing nothing different than the years before: 

To accurately complete your taxes, you need to upgrade to TurboTax Self-Employed

Why do I need to upgrade?

You have Self-employed health insurance.

TurboTax Premier does not cover this situation

Please tag anyone who can help me fix this problem, it is too frustrating to deal with every year and I definitely don't want to pay an extra hundred dollars each year for forms I don't even need.

[ThomasM125]

Your schedule K-1 from an S Corporation is reported on a schedule E, page two. Also, you have qualified business income (QBI) issues associated with an S corporation K-1 entry. These are complex matters so that is probably why you need to upgrade to the Premier edition of TurboTax. You mention that you are merely an employee, but processing your K-1 form is much more involved than simply processing a W-2 form.  @IHaveABigQuestion 

[dmertz]

I would switch to one of the CD/download versions of TurboTax where any version can do any tax return.  The higher-priced versions just provide more guidance.   Only some versions include preparing a state tax return.  You can download the tax file that you've been preparing online and continue in the CD/download version.

[IHaveABigQuestion]

@ThomasM125 Thanks for your response! Yes I know I need Premier, that's what I started in, and what I've been using for almost 10 years. But now TurboTax is trying to force an upgrade to Self-Employed which I don't need. This is a glitch that needs to be fixed. Can you please escalate this issue to someone who can fix it?  I remember other S Corp owners also complaining about it on this forum last year as well but no one fixed it! We do have self-employed health insurance as S Corp owners but it does not require any of the forms from the Self-Employed version of TurboTax. It is unethical for TurboTax to force an upgrade and make us pay an extra 100 bucks when we do not need the self-employed forms. TurboTax promotes Premier as being the right version for S Corp owners. Since you are an employee of TurboTax, will you please work with someone to fix this glitch, we'd all really appreciate it!!!

[IHaveABigQuestion]

@dmertz I did not know this was an option so this is very interesting. I have already paid for Premier online though. I assume you can efile with the downloaded version? And if you own money you can pay online through the downloaded version? So if I buy the Premier download version next year it will allow me to efile and won't tell me I need to buy a different software? Because that would be even worse, instead of upgrading and paying the difference I'd have to buy the whole self employed version if they won't let me continue. I'd still prefer they fix the online version though!! They already confirmed last year on the phone that it shouldn't have been forcing the upgrade so I don't understand why they didn't just fix it.  Do you know a different way to enter the self-employed health insurance where it goes in the same place on the tax return but doesn't cause the glitch? 

[Critter-3]

Since ALL the downloaded program handle all the same forms then you  can just buy the DELUXE version if you need to file a state return and the BASIC version if you don't.   https://turbotax.intuit.com/personal-taxes/irs-forms/

Shop for a better price than TT direct : https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-product-orders/obtain-authentic-t...

[dmertz]

Once you have paid for the online version, you are pretty much stuck with using the online version unless you want to pay again for the CD/download version.  The only case where you might be able to get credit for having already paid for the online version is if Intuit believed that there was a bug in the online version that you could avoid if you used the CD/download version, which is doubtful in this case.

[IHaveABigQuestion]

Thanks. I did call and I did get a credit and they even had a specialist from TurboTax Live confirm that I did not need the self-employed version and it shouldn't be forcing the upgrade. Now if they will fix the software, I have no idea. She said I was a niche case but I know I'm not the only S Corp owner using TurboTax...