SIMPLE IRA - What is "Amount of Contribution Attributed to this Business"?

Forum|Forum|3 years ago
April 17, 2023
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I am self-employed. I made contributions to my SIMPLE IRA as an employee and a 3% matching contribution as an employer. I entered those amounts in TurboTax Self-Employed. It is now asking me what is the "Amount of Contribution Attributed to this Business"? Do I enter the total contribution (employee plus employer contributions) or something else? Thank you!

MinhT1

You should enter only the employer contribution.

The employee part is contributed from the employee's wages.

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mpsekhonAuthor

Thank you for your answer. However, because I am self-employed (and am asking about my own contributions as an employee), shouldn't I also include the employee portion? If I do not include the employee portion here, how would I get the tax deduction for that contribution? Thank you again!

MinhT1

When you said that you are an employee, does this mean that your business pays you wages and you have a form W-2? only in this case, you are an employee and your employee contribution is excluded from taxation because that contribution is not included in box 1 of form W-2.

If you are still a sole proprietorship, you do not employ yourself and you are not an employee. In this case, you report the total contribution to the Simple IRA.

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