Self employed health and long term care insurance deduction worksheet

[monicac]

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?)

[Accountant-Man]

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.

[qbteachmt · Accepted solution]

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

[monicac]

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.

[qbteachmt]

"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?

[monicac]

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

[Brandi]

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. 

[monicac]

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. 

[qbteachmt]

@Brandi 

"My return is just me. Noone else that contributed to the SEP."

This ProSeries help topic covers employer plans and has an image of the worksheet area for reference:

https://proconnect.intuit.com/community/retirement-tax-credits-and-deductions/help/proseries-ira-faq...