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Is there a Turbo Tax glitch in Sch. C/SE reporting? It would not allow an IRA deduction.I had to override

 
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1 Best answer

Accepted Solutions
dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Is there a Turbo Tax glitch in Sch. C/SE reporting? It would not allow an IRA deduction.I had to override

There is no glitch in TurboTax's determination of whether or not a traditional IRA contribution is deductible.

 

If you or your spouse is covered by a workplace retirement plan and your MAGI is above the threshold where a deduction becomes prohibited, your traditional IRA contribution is not deductible.  Keep in mind that if you contribute to a self-employed retirement plan for 2025, you are a covered individual for 2025.

 

Also, if you have no net profit from self-employment, you are not permitted to contribute to an IRA.  You are not permitted to deduct a contribution that you are not permitted to make.  (TurboTax would have informed you of an excess contribution, so this probably does not apply to your situation.)

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2 Replies
DavidD66
Employee Tax Expert

Is there a Turbo Tax glitch in Sch. C/SE reporting? It would not allow an IRA deduction.I had to override

Please clarify?  If you are self-employed you report IRA deductions (SEP, SIMPLE, or traditional) on Form 1040 Schedule 1, NOT Schedule C.  What did you override?  

 

You cannot e-file a tax return in TurboTax if it contains an overridden field. Overrides also void the 100% accurate calculation guarantee.

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dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Is there a Turbo Tax glitch in Sch. C/SE reporting? It would not allow an IRA deduction.I had to override

There is no glitch in TurboTax's determination of whether or not a traditional IRA contribution is deductible.

 

If you or your spouse is covered by a workplace retirement plan and your MAGI is above the threshold where a deduction becomes prohibited, your traditional IRA contribution is not deductible.  Keep in mind that if you contribute to a self-employed retirement plan for 2025, you are a covered individual for 2025.

 

Also, if you have no net profit from self-employment, you are not permitted to contribute to an IRA.  You are not permitted to deduct a contribution that you are not permitted to make.  (TurboTax would have informed you of an excess contribution, so this probably does not apply to your situation.)

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