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

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

user333444999 — Sun, 29 Mar 2020 19:18:15 GMT

Re: The amount of my sep IRA contributions on $75891 income form my business was $28302. this see...

KrisD15 — Sun, 29 Mar 2020 19:54:49 GMT

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

Did you also pay yourself a salary?

Re: The amount of my sep IRA contributions on $75891 income form my business was $28302. this see...

user333444999 — Sun, 29 Mar 2020 20:10:02 GMT

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%

Re: The amount of my sep IRA contributions on $75891 income form my business was $28302. this see...

dmertz — Sun, 29 Mar 2020 20:21:05 GMT

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.