Anyone tried using the worksheet for calculating deductible SIMPLE contributions for sole proprietor in the 2020 program? It is supposed to use the same rules as the worksheet in IRS Pub 560. Page 3 of the worksheet has 2 sections: Part IV-Detail of Maximum Allowable Deduction Calculation for SIMPLE Plans, and Part V-Maximum Keogh/SEP/SIMPLE/401(k) Deductible Contribution. In the 2020 program, Part V--which is what carries to the adjustment line on the return--is showing a number $500 less than Part IV. The total number in Part IV corresponds to the amount computed manually on the Pub 560 worksheet. Am I missing something? I can't think of a reason why the program would deduct $500 less than the maximum allowable amount computed by the worksheet and by manual calculation? If I reduce the Owner-Employer match amount, which is the only real variable, the numbers change, but there is still a $500 variance. The actual maximum amount is not in excess of the limit imposed by net income. I think it's a glitch. It's never worked this way before, but everything in the last year has been so unprecedented...just asking.
Solved! Go to Solution.
Right here, you see $500 is the difference:
"You may defer up to $13,500 in 2021 and in 2020 and $13,000 in 2019"
"Level Up" is a gaming function, not a real life function.