Schedule C, Net SE income of $22,685 after SE Tax deduction . Input 1 to max SEP. Diagnostic - SEP deduction was disallowed due to the lack of self-employment income.

amontecpa · ‎03-20-2022

Please explain if there is a box that needs to be checked somewhere. How can Sch SE generate and calculate SE tax and then say no SEP deduction because no SE income?

TaxGuyBill · ‎03-20-2022

Is there a second business that had a loss?

Any chance you have the Schedule C for one taxpayer, and that you are indicating the SEP is for the spouse (with no Schedule C)?

amontecpa · ‎03-24-2022

No. It is all set up as the spouse. I even tried switching everything to the taxpayer and got the same diagnostic. So it is something else.