Skip to main content
November 6, 2024
Question

MAss taxes, SEP withdrawal sole proprietorship

  • November 6, 2024
  • 0 replies
  • 0 views

Contributions to a SEP for employees of an S corporation are deductible both federally and in Massachusetts, but SEP contributions for a sole proprietor are not deductible in MA.   Hence, for the last several years, my SEP contributions were deductible on the federal level but not in Massachusetts - read i paid tax on those contributions.  Accordingly, I kept track of them to ensure I'd not be taxed again when I withdrew the monies.  That time has now come and I am taking distributions, expecting to pay income tax on the federal level but not in Mass - sadly I do not see how / where Turbo Tax makes the adjustment in Massachusetts.  Am I blind?  I am simulating 2024 taxes to aid in financial planning.  Can anyone help?