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Self employed health and long term care insurance deduction worksheet

Forum|Forum|6 years ago
June 14, 2020
8 replies
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My client is making a contribution to a self employed 401k for he and his wife in the amount of $77,059

B. on this form says -Total from the Keogh, SEP and SIMPLE contribution worksheet for the owner of this trade or business is $77,059

The question says - Enter the amount, if any, attributable to this trade or business only

Would that amount be the $77,059?

Or is it asking how much are they personally contributing vs the business? (however it is a sole proprietor, so that is still them personally, correct?)

ProSeries Basic

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Best answer by qbteachmt

Keogh, SIMPLE and SEP plans are not the same as 401(k) or as each other.

Accountant-Man

Level 13

Assuming that the wife is an employee and not an owner, the contribution for her belongs on Sch C, not on the 1040.

Then the balance of the $77,059, his, goes on the 1040 and is the amount attributable to the trade or business.

** I am "Elevating with Intention!"

M

monicacAuthor

Level 5

Thank you for your response.

They are both owners. In the basic Proseries version on the Keogh, SEP and SIMPLE contribution worksheet there is a place to check if you want the system to compute the maximum deductible contribution for a 401K, which I did.

When I did the final review, I got the error which was my previous question. Even though it does not say anything about 401k the $77,059 is the amount of both of their allowable deductions. I just need to answer the question from above in order to clear the error. I am assuming it is the total amount, because he also gets a W-2 from another company and this contribution is not in regards to those earnings.

qbteachmtAnswer

Level 15

Keogh, SIMPLE and SEP plans are not the same as 401(k) or as each other.

Don't yell at us; we're volunteers

qbteachmt

Level 15

"They are both owners."

It's a bit confusing, since there is no Combined Contribution provision. Are you splitting this into separated Sched C, then?

Don't yell at us; we're volunteers

M

monicacAuthor

Level 5

Yes I am doing a split sch C. The maximum contribution for him is $41,549 and for her is $35,510.

B

Brandi

Level 2

I also need to know the answer to this, but noone has given you one. I am guessing I need to put the total in box B on my return, but I am not sure. You also thought you were supposed to put the total but noone gave you a stright forward answer. My return is just me. Noone else that contributed to the SEP.

M

monicacAuthor

Level 5

I'm sorry that was too long ago I don't remember what I did. I looked back at the return but I don't see where it asks that question.

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