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The amount of my sep IRA contributions on $75891 income form my business was $28302. this seems rather high is this correct

 
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3 Replies
KrisD15
Expert Alumni

The amount of my sep IRA contributions on $75891 income form my business was $28302. this seems rather high is this correct

That does seem high, it should be up to 25% of your net earnings. 

Did you also pay yourself a salary? 

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The amount of my sep IRA contributions on $75891 income form my business was $28302. this seems rather high is this correct

No I am a sole proprietor. that was the profit after expenses 75891 and when I put that in it liked out 28302 which is deftly over 25% 

dmertz
Level 15

The amount of my sep IRA contributions on $75891 income form my business was $28302. this seems rather high is this correct

You've entered your net profit of $75,891 twice.  Remove one of those entries.  If you received a Form 1099-MISC showing this income, box 7 of that one 1099-MISC form in TurboTax is the only place you should have entered the $75,891.

 

The maximum permissible is 20% of net earnings, not 25%.  Net earnings is net profit minus the deductible portion of self-employment taxes.  

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