Deducting the employee SEP-401K contribution; cannot find where to do it

Forum|Forum|2 years ago
February 1, 2024
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I received a 1099-NEC for consulting work. I assume that I need to report that income in full or the IRS will not be able to match the 1099 to my tax return. But I contributed (as the employee) $30K to a SEP 401K (I am over 50 yrs old). Yet, I cannot find where to enter that deduction. And yes, my earnings were over $30K.

I did find a section in deductions for it, but based on the limits it is giving me, I'm quite sure that if is only for any employer deduction that I may make.

Despite lots of research, I cannot figure out where to enter the $30K employee deduction to reduce the tax liability for my self employment income.

Best answer by dmertz

I think you mean a self-employed 401(k). "SEP" in IRS documentation refers to an IRA-based plan.

The section for self-employed retirement plans is under in the Wages & Income section Business Deductions and Credits. Nothing in the Deductions & Credits section of TurboTax relates to self-employed retirement.

dmertzAnswer

Employee

I think you mean a self-employed 401(k). "SEP" in IRS documentation refers to an IRA-based plan.

ivarsbAuthor

Thank your for taking the time to reply,

You are correct, I was referring to the self employment 401K.

I don't see a section entitled to Business Deductions and Credits in Wages and Income. The closest to that is called Self-Employment Income and Expenses; right after "Job (w2). That is where I listed the income from the 1099-NEC, but I cannot find where to take the 401k deduction.