Skip to main content
Level 2
March 21, 2022
Question

Schedule C, Net SE income of $22,685 after SE Tax deduction .Input 1 to max SEP.Diagnostic - SEP deduction was disallowed due to the lack of self-employment income.

  • March 21, 2022
  • 1 reply
  • 4 views
Please explain if there is a box that needs to be checked somewhere.  How can Sch SE generate and calculate SE tax and then say no SEP deduction because no SE income?
This topic has been closed for replies.

1 reply

Level 15
March 21, 2022

Is there a second business that had a loss?

Any chance you have the Schedule C for one taxpayer, and that you are indicating the SEP is for the spouse (with no Schedule C)?

amontecpaAuthor
Level 2
March 24, 2022

No.  It is all set up as the spouse.  I even tried switching everything to the taxpayer and got the same diagnostic.  So it is something else.