SEP Contribution

Even though I enter the SEP contribution in turbo tax the amount is not utilized in the calculation of the adjusted taxable income.  Any suggestions?

 

You need to check the net income of your business the SEP contribution is attached to.  It cannot create a loss (or increase an already calculated loss) to apply to your income.  It is likely that your business is already reporting a loss or $0 net income.

 

@hansonpjt 

There is a profit from the business.  For some reason the deduction isn't showing up on Schedule 1.  Could this be a software problem?

 

I can't recreate your issue in a test return.  It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

 

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on the top of your screen and select Online. 

1. Scroll down to and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 

Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.   

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

 

@hansonpjt 

Here is the token for my file 1097140.

Upon review, there is an issue with the software that I am reporting to our tech team.  There is a workaround though so you can continue filing your returns.  

 

In TurboTax Home & Business you can follow these steps to get your SEP contributions to be reported on your returns:

1. Within your return use the Forms icon in the upper right of the screen to switch to Forms mode
2. Scroll down to the Keogh/SEP Wks and select it
3. On the form in the preview pane, scroll down and make sure the box on line 4d is marked for the taxpayer or spouse (whoever is making the contribution)
4. Scroll down again to Part II line 1b and enter the amount shown on line 31 of your Schedule C
5. The steps in Part III of the worksheet will populate and you can review Schedule 1 by selecting it from the menu at the left, line 16 will be populated now

@hansonpjt 

 

Thank you for this information.  The deduction is now showing up.

Turbotax seems to have this bug every year. It never asks for my SEP contribution after finishing my business income and expenses. This would see a simple fix, and every year I have to search for the proper place and call it up. I always make a contribution during the year, and another at tax time. If I forget to look for the form, this will cost me a lot of money.

This year I can't find how to enter a Keogh/SEP amount. I can't afford to figure out the calculations myself. Any suggestions for how I can get Turbotax to calculate the allowable amount, as I've done for the last 15 years?

I figured out how to do this. You have to look at all forms, not just the ones currently used in your return. Click on the "Open Forms" icon when you go into forms mode. Search for "Keogh" in the search box and that will bring up the correct form. For me, I found the SEP box and chose "Check here to compute the maximum deductible contribution." This automatically fills out the form.

I agree.  Same thing happens to me.  This should be addressed with K-1 pass through income for self-employed pass throughs.