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my business shows 65,000 of income after deductions. I set 10,000 as the employeer contribution to my solo 401k and my taxes only went down 990. Between me and my wife we are in the 22% tac braket and then there is the 15% self employment tax. For every 10,000 contributed, I should see 3k of taxes go down. Something seems very broken in turbotax.
Your own self employment retirement plans don't go to Schedule C. They go to Schedule 1 line 16 then to 1040 line 10 as an adjustment to your total income. It will only reduce any regular income tax you owe. It won't reduce the self employment tax.
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