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Level 2
February 12, 2024

3422

  • February 12, 2024
  • 2 replies
  • 9 views

The following diagnostic is generating:

The spouse's SEP deduction was disallowed due to the lack of self-employment income.

Solution:

This means that a SEP (Simplified Employee Pension) contribution was entered for the spouse, but no self-employment income was reported for the spouse on the return. Since SEP contributions must be based on self-employment earnings, the deduction is not allowed under these conditions.

What to review:

Unnumbered Lists
  • Double-check that the spouse has valid self-employment income (e.g., Schedule C or Schedule F).
  • If the SEP contribution is invalid, remove or correct the SEP entry in the input screen.

2 replies

abctax55
Level 15
February 12, 2024

Wow... that's a bummer.

HumanKind... Be Both
IRonMaN
Level 15
February 12, 2024

Unfortunately Intuit does not provide a manual for those codes and ever since Intuit defunded their College of Mind Reading, nobody here really has any idea what those codes mean.  If you give a little more information someone might be able to help.

Slava Ukraini!