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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
Level 1
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?
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2 Comments 2
TaxGuyBill
Level 15

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
Level 1

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.

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