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June 4, 2019
Solved

I get a K1 from my S-Corp, where do I enter SEP contribution?

  • June 4, 2019
  • 1 reply
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I'm using TurboTax Self-Employed. I get a K-1 from my S-Corp where I'm self-employed. How/where do I enter a SEP contribution? I found something under business deductions, but it doesn't accept any data...
Best answer by MichaelDC

As a shareholder in an S corporation, you are not self employed.  Social Security and Medicare taxes are withheld from your pay reported on your W-2.  Your SEP-IRA contribution is also not reportable on your personal tax return because your SEP IRA contribution is made by the S corporation based on your W-2-reported income and deducted as an expense on the S corporation's income tax return.

There is no reason for these to appear on your Schedule K-1 (Form 1120S).  Your Social Security and Medicare withholding are reported on your W-2.  Your SEP-IRA contribution might also be shown on your W-2, but only for your information, not for reporting anywhere on your personal tax return.


1 reply

MichaelDCAnswer
Employee
June 4, 2019

As a shareholder in an S corporation, you are not self employed.  Social Security and Medicare taxes are withheld from your pay reported on your W-2.  Your SEP-IRA contribution is also not reportable on your personal tax return because your SEP IRA contribution is made by the S corporation based on your W-2-reported income and deducted as an expense on the S corporation's income tax return.

There is no reason for these to appear on your Schedule K-1 (Form 1120S).  Your Social Security and Medicare withholding are reported on your W-2.  Your SEP-IRA contribution might also be shown on your W-2, but only for your information, not for reporting anywhere on your personal tax return.


March 6, 2023

If the S Corp has a loss for 2022, can the SEP IRA contribution still be expensed?  Thank you.