I am using Turbo Tax Self Employed. Where do I enter my individual 401k contributions?

[PaulaM]

• Sign into your account and select the 'Take me to my return' button
• Select Tax Tools, Tools, Topic Search
• Type 'self-employed retirement', then select GO

Answer yes to the question, 'Did you contribute to an Individual or Roth 401k plan', then continue to enter the details.

[dyons]

Given my net earnings from self employment, will TurboTax calculate the maximum I could contribute to a solo 401k? There are many calculators that do it, and I was wondering of TT has such a built-in calculator.

Thanks.

[HollyP]

Yes, @dyons when preparing your return using TurboTax Self-Employed, you can check the box to allow TurboTax to calculate your maximum 401(k) contribution. 

Individual 401(k) plans for the self-employed (also called solo 401k or solo-K plans) are entered in the Other Business Situations section of Income & Expenses in TurboTax. You can quickly jump to this section while preparing your return if you click on the search box at the top right of the page and type "self employed 401k" then click on the first result, which is jump to self employed 401k. As you work through this section, you will see a page titled, "Individual and Roth 401(k) plans" click on the box to "maximize contributions to 401(k)" and continue to have TurboTax calculate it for you. (See pic below.)

For more information, take a look at: Can the Self-Employed Have a 401(k)?

[HollyP]

Yes, @dyons when preparing your return using TurboTax Self-Employed, you can check the box to allow TurboTax to calculate your maximum 401(k) contribution. 

Individual 401(k) plans for the self-employed (also called solo 401k or solo-K plans) are entered in the Other Business Situations section of Income & Expenses in TurboTax. You can quickly jump to this section while preparing your return if you click on the search box at the top right of the page and type "self employed 401k" then click on the first result, which is jump to self employed 401k. As you work through this section, you will see a page titled, "Individual and Roth 401(k) plans" click on the box to "maximize contributions to 401(k)" and continue to have TurboTax calculate it for you. (See pic below.)

For more information, take a look at: Can the Self-Employed Have a 401(k)?

[manny210]

@HollyP, thanks for the information. This section is where I've been stuck (for a couple of days now).

Here is an issue that I am having:

I enter the Employer Matching (Profit Sharing) Contributions of $3,825

I then enter my Roth 401k contribution of $18,500 (I have a Roth Solo 401k set up. Also, this is my only 401k contribution for 2018)

Now under Less Common Business Situations it shows Self-employed Retirement amount of $315

If I remove the $18,500 the $315 changes back to $3,825

Checking "Maximized Contribution to Individual" shows the following:

Roth 401k $18,500 

Already contributed $18,500

Maximum Allowed to Qualified Plans $315

Amount to Contribute by Plan Due Date $315

Employer Match $3,825

I had no issues with TT 2016 and 2017 versions when entering this information.

Please advice. Thanks and God Bless!

[Stephen529]

Hi, I could not figure out how to ask a question, so i am just replying to a conversation that has nothing to do with the conversation's topic, apologies.  I want to know where in TurboTax premier i can check what tax rate the software is applying to what portion of my taxable income.  

[Cynthiad66]

Your “effective tax rate” is the average percentage of your taxable income that you owe in federal taxes. In order to calculate this rate, you simply divide your tax liability (what you owe) by your total taxable income.

@Stephen529

[Stephen529]

Thanks Cynthiad66, but i wanted to know if i can see what rate was used like on the capital gains from the sale of a second home as opposed to the tax rate on my W-2 income.  I ask b/c the tax amount due that the software is telling me seems high.

[DaveF1006]

Look at the Qualified Dividend and Capital Gains Worksheet in your return to determine the tax rate that was used. 

@Stephen529

[Stephen529]

I see it, thank you