Question

Self-Employed Retirement Plans

Forum|Forum|5 years ago
March 14, 2021
1 reply
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Under Business Deductions and Credits, I enter my 401k contributions. I have done this for years, in 2020 I am entering my 401k Contributions however it is not showing up in my summary indicating that TurboTax processed it. It it's not even reflected in my refund amount. I checked with my previous years and when I delete the 401k number it changes my return. My main concern is that it does not appear that this 2020 software is giving me credit for my 401k contributions. The State asked me about the Retirement plan info on the K-1 in Box 20, and it did reduced the amount owed to the state.

I think there is a software issue here entering the 401k info. I am going to delete the software and install it again to see if that works.

401K

D

dmertz

Employee

Income on a Schedule K-1 (Form 1065) from a partnership is only income from self-employment to the extent that it's reported with code A in box 14. Check the Keogh, SEP and SIMPLE Contribution Worksheet to see the calculation of the amount of the self-employed retirement deduction. See that this amount propagates to Schedule 1 line 15.

Also, if income tax is already zero without the 401(k) contribution, the deduction for a self-employed retirement contribution will not reduce your tax liability. The deduction for a self-employed retirement contribution will not reduce other taxes such as self-employment tax.