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Level 3
posted Apr 15, 2023 9:39:30 PM

Where does Pension go for Self Employed?

Turbo Tax has always put SEP IRA contribution on 1040 (Sch 1 recently); never on Schedule C under Pension. What goes on Schedule C? It says Employee Pension. But if you are the only employee? Can you choose Sch C Pension expense??

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1 Best answer
Expert Alumni
Apr 16, 2023 5:46:29 AM

The entry on Schedule C for pension plans is strictly for the business's contribution to employees' pension plans.  If your business has employees and you have provided a pension plan for them which you contribute to on their behalf from the business, then this is where you would enter that information.  

 

When you file a Schedule C as a sole proprietor, you are not considered to be an employee of the business.  You are the business.  Retirement plan contributions for you are reported on Schedule 1, not on Schedule C.  You cannot choose to deduct it on Schedule C when the retirement plan contributions are for yourself.

1 Replies
Expert Alumni
Apr 16, 2023 5:46:29 AM

The entry on Schedule C for pension plans is strictly for the business's contribution to employees' pension plans.  If your business has employees and you have provided a pension plan for them which you contribute to on their behalf from the business, then this is where you would enter that information.  

 

When you file a Schedule C as a sole proprietor, you are not considered to be an employee of the business.  You are the business.  Retirement plan contributions for you are reported on Schedule 1, not on Schedule C.  You cannot choose to deduct it on Schedule C when the retirement plan contributions are for yourself.