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New Member
posted Mar 29, 2020 12:18:15 PM

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

0 3 320
3 Replies
Expert Alumni
Mar 29, 2020 12:54:49 PM

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

Did you also pay yourself a salary? 

New Member
Mar 29, 2020 1:10:02 PM

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% 

Level 15
Mar 29, 2020 1:19:14 PM

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.