IRS Federal taxes
I am a Self employed person. I have a SEP IRA.
Normally I state the amount of the SEP IRA amount contributed for the year on the first page of form 1040. ( so it is a deduction just like my self emp health ins payments ). Somebody just told me that I can deduct the amount of my SEP IRA contributions in my Schedule C too since it is a business expense. Is this true ? Pls let me know.
Thanks,
Nick
That's how it should be done, yes.
Absolutely not!
However, if you have employees and make SEP contributions for *them*, then *those* contributions are deducted on your Sched C. But you never deduct your *own* contribution on the Sched C.
-- Rich Carreiro snipped-for-privacy@rlcarr.com
I sure hope that somebody isn't a tax professional! You can tell by this, then, that the answer is "no". ChEAr$, Harlan Lunsford, EA n LA
wrote
Nope. You were told wrong information.
-- Paul A. Thomas, CPA Athens, Georgia
No, that is not true. The following is from Pub 560:
Deduct the contributions you make for your common-law employees on your tax return. For example, sole proprietors deduct them on Schedule C (Form 1040), Profit or Loss From Business, or Schedule F (Form 1040), Profit or Loss From Farming, partnerships deduct them on Form 1065, U.S. Return of Partnership Income, and corporations deduct them on Form
1120, U.S. Corporation Income Tax Return, Form 1120-A, U.S. Corporation Short-Form Income Tax Return, or Form 1120S, U.S. Income Tax Return for an S Corporation. Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040, U.S. Individual Income Tax Return. (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., you get from the partnership.)BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.