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The worksheet makes an adjustment for SE tax and other stuff: Pub 560
Deduction Limit for Self-Employed Individuals.
If you make contributions for yourself, you need to make a special computation to figure your maximum deduction for these contributions. Compensation is your net earnings from self-employment, defined in chapter 1. This definition takes into account both the following items.
The deduction for the deductible part of your self-employment tax.
The deduction for contributions on your behalf to the plan.
The deduction for your own contributions and your net earnings depend on each other. For this reason, you determine the deduction for your own contributions indirectly by reducing the contribution rate called for in your plan. To do this, use either the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed in chapter 6. Then, figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 6.
