Are you self-employed? If so, your maximum SEP contribution is determined from your net profit from self-employment. No net profit, no permissible SEP contribution.
If the SEP contribution was made by an employer from which you receive a W-2, the employer, not you, gets the deduction.
A SEP contribution is an above-the-line deduction on Schedule 1 that reduces AGI. It does not subtract directly from your tax liability.
Examine TurboTax's Keogh, SEP and SIMPLE Contribution Worksheet to see the calculation of your self-employed retirement deduction.
Are you self-employed? If so, your maximum SEP contribution is determined from your net profit from self-employment. No net profit, no permissible SEP contribution.
If the SEP contribution was made by an employer from which you receive a W-2, the employer, not you, gets the deduction.
Yes net profit. Yes self employed. The contribution not being subtracted from tax bill.
A SEP contribution is an above-the-line deduction on Schedule 1 that reduces AGI. It does not subtract directly from your tax liability.
Examine TurboTax's Keogh, SEP and SIMPLE Contribution Worksheet to see the calculation of your self-employed retirement deduction.