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Returning Member
posted Nov 6, 2022 10:47:32 AM

Sch C line 19

Do I use this line to report Solo 401(k) matching contributions?

Thank you.

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4 Replies
Level 15
Nov 6, 2022 12:02:11 PM

NO ... you are NOT an employee on your own Sch C so it is not treated as a deductible employee contribution...  from the Sch C instructions : 

 

Line 19
Enter your deduction for the contributions you made for the benefit of your employees to a pension, profit-sharing, or annuity plan (including SEP, SIMPLE, and SARSEP plans described inPub. 560). If the plan included you as a  self-employed person, enter the contributions made as an employer on your behalf on Schedule 1 (Form 1040), line 16, not on Schedule C.

Level 15
Nov 6, 2022 12:04:19 PM

To enter your self-employed retirement contributions in TurboTax, log into your tax return  (for TurboTax Online sign-in, click Here) and type "self-employed retirement" in the search bar then select "jump to self-employed retirement". TurboTax will guide you on entering this information.     

 

OR use the tax topics tool ... under the tax tools >> tools >> tax topics 

Returning Member
Nov 6, 2022 12:58:24 PM

Not trying to argue, but:

From Pub 560 Part 1 (last para b4 Part 2) https://www.irs.gov/pub/irs-pdf/p560.pdf :

Sole proprietor. A sole proprietor is an individual who owns an unincorporated business
by himself or herself, including a single-member limited liability company that is treated as a dis-
regarded entity for tax purposes. For retirement plans, a sole proprietor is treated as both an
employer and an employee.

When an employer makes a matching contribution to 401(k) there are no additional FICA taxes taken from the employee. If I make a matching contribution to a Solo 401(k), it follows that that the contribution should be deducted from the SE tax calculation.

Just trying to figure out how to make that happen.

Level 15
Nov 7, 2022 4:22:44 AM

Although a sole-proprietor is both employee and employer, none of the contributions to your solo 401(k) go on schedule C.  Schedule C line 19 is only for reporting the contributions made on behalf of non-owner employees.  Contributions to the sole-proprietor's own solo 401(k) account appears on Schedule 1 line 16 as self-employed retirement contributions.  In TurboTax this is done through entries on the Keogh, SEP and SIMPLE Contribution Worksheet.