Question

The amount of my sep IRA contributions on $75891 income form my business was $28302. this seems rather high is this correct

Forum|Forum|6 years ago
March 29, 2020
1 reply
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TurboTax Self Employed Online

That does seem high, it should be up to 25% of your net earnings.

Did you also pay yourself a salary?

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U

user333444999Author

No I am a sole proprietor. that was the profit after expenses 75891 and when I put that in it liked out 28302 which is deftly over 25%

D

dmertz

Employee

You've entered your net profit of $75,891 twice. Remove one of those entries. If you received a Form 1099-MISC showing this income, box 7 of that one 1099-MISC form in TurboTax is the only place you should have entered the $75,891.

The maximum permissible is 20% of net earnings, not 25%. Net earnings is net profit minus the deductible portion of self-employment taxes.

The amount of my sep IRA contributions on $75891 income form my business was $28302. this seems rather high is this correct

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