What taxes are deferred by the solo k vehicle?

[jtmarlin]

I have a solo k as a sole proprietor (no LLC).  From what I understand, the only taxes deferred are federal income tax.  FICA taxes are still paid but my real question is are state income taxes deferred as well?  I live in New York City and on my state return it dropped the FULL income of my business w/o taking into account the deferred contributions to my solo k (which federally is nearly all of my income).  Am I really paying 10+ percent state tax on my solo k contributions and not getting a state income tax deferment as well as federal?

[Critter-3]

They should also be exempt from state taxes so review the state interview again and look for any questions on the 401K contributions.

[jtmarlin]

What makes you assume this?  I certainly can't find it written anywhere in NYS tax code.  The IRS also doesn't discuss withholding w/regards to state income tax.

[Critter-3]

NY taxes distributions from a 401K like the feds so the state will not also tax the contributions following the feds. https://www.tax.ny.gov/pit/file/information_for_seniors.htm

Yes, money withdrawn from pensions and 401(k)s, 403(b)s and IRAs are combined and taxed as regular income. Tax rates run from 4 percent to 10.9 percent, just like for other income. But federal, New York state pensions and military retirement pay are tax-exempt.    https://states.aarp.org/new-york/state-taxes-guide#:~:text=Yes%2C%20money%20withdrawn%20from%20pensi....

[jtmarlin]

I appreciate your attempt at help but I'm not sure that this is answering my question .

[jtmarlin]

Hey I'm really sorry.  This issue has had me frazzled for a few days now and I finally.made sense in my head.  TurboTax accounts for the solo k and self employment tax on line 18 on the NYS return.