Can both Employee and Employer contributions considered for Adjustments to income (Schedule1, Part II, Line 15)

[sun244]

Folks,

This is for Self Employed one person Business having EIN. I have made Employee and Employer contribution to Individual 401k plan by Vanguard.

I am seeing TT is taking both my Employer and Employee 401k contributions as adjustment to income (Schedule 1, Part II, Line 22).  Is this right?

Thanks

[LeonardS]

No, if you are self-employed there is no employer-employee you make your contributions as a self-employed individual.  There can only be one contribution.   You can not make one as an employee and then a second one as the employer.

[sun244]

Thanks for the reply.  I respectfully disagree.  When I make contributions as Individual 401k contributions to Vanguard there is separate categories for Employee and Employer. How can you say there are no Employee and Employer categorized contributions? I do agree that both Employee and Employer contributions comes from the one person Business entity.  If you try any of the Solo 401k calculators to calculate your maximums, you will get results like as follows, the question is TT is taking both Employer and Employee 401k contributions ($30652 as in this example below) as adjustment to income (Schedule 1, Part II, Line 22).  Is this right?

Example

[RobertB4444]

@sun244  Yes, solo 401K contributions are deductible and can be deducted from income.  So the entire contribution is deducted from income.

[sun244]

Is this a recent change? I see my CPA deducting only Employer part of the contribution.

Thanks

[ErnieS0]

There is no change in the law @sun244. As Tax Experts @Leonard Smith and @RobertB4444 say, both the employer and employee portions are deductible. Ask your CPA. They prepared your tax return.