Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
T2019T
Level 1

Impact of solo defined benefit plan on self-employment tax

Is it correct that contributions (for myself) to a solo defined benefit plan (for a sole proprietorship or LLC taxed as a sole proprietorship with no employees) would NOT reduce self-employment tax? My understanding based on the Schedule C instructions is that contributions to such a plan would NOT be entered on Schedule C, line 19 (and so would NOT flow through to Schedule SE), but would instead be entered on Schedule 1, line 16 as an adjustment to income.

1 Reply
Mike9241
Level 15

Impact of solo defined benefit plan on self-employment tax

you are correct. line 19 on schedule C is for deposits into retirement plans that are for the benefit of the business's employees. you are not an employee. 

Dynamic AdsDynamic Ads
Privacy Settings
v