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Level 2
May 26, 2022
Question

where do you deduct employers contribution for his employees sep-ira on tax return

  • May 26, 2022
  • 1 reply
  • 46 views

He is putting in max deposit as figured by tax software. he will have 2 employees to qualify for contributions. for a total of $8500 (25%of w2 income). where does that go on return

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1 reply

Just-Lisa-Now-
Intuit Community Champion
May 26, 2022
Sch C? or some other business entity?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 10
May 27, 2022

I agree with Lisa, and I believe if his business is reported on the cash basis, possibly it is not deducted until the year it is paid.

abctax55
Level 15
May 27, 2022

One has until the due date of the return, including any extensions, to make a deductible SEP contribution for the prior year. Even on the cash basis.

The deduction is claimed on the line for employee benefits/retirement contributions - the actual line depends on the entity claiming the deduction (Sch C = Pension & profit-sharing, line 19, Form 1120-S = Pension, profit sharing Line 17,....)

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