Question
Has anyone reported the NJ tax problem where Turbo Tax does NOT deduct the amount contributed to a solo 401K when reporting business profit on line 1 of form NJ-BUS-1?
It appears that Turbo Tax is not computing the NJ taxes correctly. Because I am self employed and need to fill out the NJ-BUS-1 form. The instructions for schedule NJ-BUS-1 on page 17 of the NJ 1040 instructions states to “Make the following adjustments to your federal Schedule C”, with item 5 stating “Deduct your qualified contributions to a self-employed 401(k) Plan. Contributions that exceeded the federal limits are not deductible for New Jersey purposes”.
