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Individual 401k
I am also a self-employed sole proprietor (LLC)
I made $15,000 this year from my self-employment.
I contributed $15,000 to my individual 401K
I got Turbotax Self-employed 2016
I went to Business > Less Common Business Situations > Self-employed Retirement
I clicked on the button "Maximize Contribution to Individual 401(k)"
But adding i401k contributions did not lower my taxes at all.
Can anyone explain why this is happening?
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Individual 401k
Mostly answered in comments.
Most forms and calculations are hidden using Turbotax Online. If you really want to see forms and calculation, you need to use turbotax home & business version installed on your own mac or PC. You can see some numbers including the 1040 by going to My Account, Account Tools, Tax Summary, Preview my 1040.
Many credits and calculations will give wrong answers if you do them out of order. Once you add all your income, W-2, etc. then everything gets recalculated.
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Individual 401k
to the max contribution allowed for a 401k whichever is Less.
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I *THINK* you need to enter it differently if you contribute that much (I think the 'maximize' option just does the employer part, not the employee elective deferral part). @dmertz can probably guide you with that.
As VolvoGirl pointed out, if your profit was $15,000, you can't contribute the full $15,000. You need to compensated for the 1/2 SE tax adjustment.
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I'll adjust the Contribution. The reason my tax didn't get lower was because I didn't put any W2 income into Turbotax, since I haven't received the W2 form yet.
I don't know how to see the line 28 of Form 1040. What button do i have to press to see it? I just started using Turbotax self employed.
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Individual 401k
Mostly answered in comments.
Most forms and calculations are hidden using Turbotax Online. If you really want to see forms and calculation, you need to use turbotax home & business version installed on your own mac or PC. You can see some numbers including the 1040 by going to My Account, Account Tools, Tax Summary, Preview my 1040.
Many credits and calculations will give wrong answers if you do them out of order. Once you add all your income, W-2, etc. then everything gets recalculated.
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