topic How to report additional SEP IRA contribution in business tax in Business & farm

How to report additional SEP IRA contribution in business tax

zyl2k — Thu, 11 Mar 2021 01:10:32 GMT

Turbotax business 2019 calculated my SEP contribution to be about 4,000 on K1. When I do my personal tax on Turbotax home & business, it asked me if I want to maximum the contribution. I choosed "yes" and the SEP contribution became about 6,000. So my business paid the 6,000 to my SEP IRA in 2020. The difference is about 2,000. How or where I should report the extra 2,000 in Turbotax business 2020 as the money went out in 2020? Thanks!

Re: How to report additional SEP IRA contribution in business tax

gloriah5200 — Thu, 11 Mar 2021 19:21:03 GMT

If your business is an S Corporation, then the S corp gets the deduction by including the SEP contribution on Form 1120S line 17, Pension, profit-sharing, etc., plans. It's not reportable anywhere on the owner's W-2.

Re: How to report additional SEP IRA contribution in business tax

zyl2k — Fri, 12 Mar 2021 17:02:56 GMT

Thank you for your reply, Gloria. We don't have a S Corp. We have a Multi Member LLC so its very different.