topic SEP IRA Contributions are not deducted from Tax bill in TurboTax? in Retirement tax questions

SEP IRA Contributions are not deducted from Tax bill in TurboTax?

katherine-sweetman — Tue, 03 Feb 2026 06:08:46 GMT

Re: SEP IRA Contributions are not deducted from Tax bill in TurboTax?

dmertz — Sun, 19 Jan 2025 16:31:10 GMT

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.

Re: SEP IRA Contributions are not deducted from Tax bill in TurboTax?

katherine-sweetman — Mon, 20 Jan 2025 15:51:50 GMT

Yes net profit. Yes self employed. The contribution not being subtracted from tax bill.

Re: SEP IRA Contributions are not deducted from Tax bill in TurboTax?

dmertz — Mon, 20 Jan 2025 15:59:49 GMT

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.