Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Self employed health and long term care insurance deduction worksheet

Highlighted
Level 3

My client is making a contribution to a self employed 401k for he and his wife in the amount of $77,059

B. on this form says -Total from the Keogh, SEP and SIMPLE contribution worksheet for the owner of this trade or business is $77,059

The question says - Enter the amount, if any, attributable to this trade or business only

Would that amount be the $77,059?

Or is it asking how much are they personally contributing vs the business? (however it is a sole proprietor, so that is still them personally, correct?)

 

 

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 12

Keogh, SIMPLE and SEP plans are not the same as 401(k) or as each other.

*******************************
"Level Up" is a gaming function, not a real life function.

View solution in original post

5 Replies 5
Highlighted
Level 11

Assuming that the wife is an employee and not an owner, the contribution for her belongs on Sch C, not on the 1040.

Then the balance of the $77,059, his, goes on the 1040 and is the amount attributable to the trade or business.

** I'm still a champion... of the world! Even without The Lounge.
Highlighted
Level 3

Thank you for your response.

They are both owners. In the basic Proseries version on the Keogh, SEP and SIMPLE contribution worksheet there is a place to check if you want the system to compute the maximum deductible contribution for a 401K, which I did.

 

When I did the final review, I got the error which was my previous question.  Even though it does not say anything about 401k the $77,059 is the amount of both of their allowable deductions. I just need to answer the question from above in order to clear the error. I am assuming it is the total amount, because he also gets a W-2 from another company and this contribution is not in regards to those earnings.

0 Cheers
Highlighted
Level 12

Keogh, SIMPLE and SEP plans are not the same as 401(k) or as each other.

*******************************
"Level Up" is a gaming function, not a real life function.

View solution in original post

Highlighted
Level 12

"They are both owners."

It's a bit confusing, since there is no Combined Contribution provision. Are you splitting this into separated Sched C, then?

*******************************
"Level Up" is a gaming function, not a real life function.
Highlighted
Level 3

Yes I am doing a split sch C. The maximum contribution for him is $41,549 and for her is $35,510. 

0 Cheers