LLC 1065 SEP contribution not flowing?

[Mikemuck]

Running an LLC with two partners.  In TT for business (1065) I enter SEP contribution, that creates an entry in 13 of K1 (with R) as the code.   So far so good.  In TT home and business, for my personal tax, I enter the SEP contribution, and while it reduces income taxable income, it doesn't reduce SS or Medicare taxes.   Should these not be reduced too?

I first was expecting the TT for business (1065)  to reduce the ordinary business income (line 1) and net self employment earnings distribution (14 code A) for the SEP contribution, which would then flow correctly in TT home and business (I wouldn't add a sep in the personal return as it would have already been subtracted from the K1).

Help !!! Thanks.

[DawnC]

No, only the portions you contribute for your employees are an adjustment to the Self-Employment tax.  Your portion only reduces income tax. 

• For a self-employed person contributing to his or her own SEP-IRA, contributions are deducted as an adjustment to income on Form 1040 line 28. SEP contributions reduce a person's adjusted gross income, reduce taxable income, and thereby reduce the federal income tax. SEP IRAs do not impact the calculation of the self-employment tax since the self-employment tax is calculated before SEP contributions are calculated. A self-employed person reduces income tax only by contributing to his or her own SEP-IRA.
• A self-employed person who contributes to SEP IRAs for his or her employees boosts business expenses.  This lowers net profit, reducing both the self-employment tax and the income tax.