Income limit for SEP IRA

[Krobey]

I am employed by a nonprofit and have a 403(b).  My wife is employed in a public school system and has a pension plan but also a very small 403(b) with under $1,000.  She also has a private practice that did far better than expected in 2021 producing a sizable tax withholding deficit.  We have been advised that she could set up a SEP IRA and make a contribution to reduce our tax liability for 2021.  We wanted to enter a hypothetical contribution into Turbotax to assess the impact but it says we can't take a deduction because our income is too high.  What is the income limit in our situation?  Our combined AGI is roughly $250K.  

[Bsch4477]

Enter SEP IRA as directed here. 

https://ttlc.intuit.com/community/retirement/help/where-do-i-enter-my-sep-ira-contributions/00/26783

[MaryK4]

Be sure that you are entering the information in the Self-Employed Retirement section (in the Less Common Business Situations sections). Contributions you can make to a SEP-IRA as self- employed cannot exceed the lesser of:

1. 25% of the employee's compensation, or
2. $61,000 for 2022 ($58,000 for 2021 and $57,000 for 2020

If you make contributions for yourself, you need to make a special computation to figure your maximum deduction for these contributions.  This definition takes into account the deduction for the deductible part of your self-employment tax and the deduction for contributions on your behalf to the plan. TurboTax does these calculations for you.