Sep Contribution

[S&D Associates]

I am a sole proprietor. Can I contribute to a sep as an employee and employer? Which form and which line do the contributions go on?

[TaxGuyBill]

A SEP is only an employer plan, so you can only contribute an employer portion (maximum is 18.5%-ish, see chapter 5 of Publication 560), and deduct it on Schedule 1.

https://www.irs.gov/pub/irs-pdf/p560.pdf#page=33

[RWG1950]

You might want to check out Vanguard's solo 401-K plan.
Can make employer pre-tax contributions & employee pre-tax or Roth after-tax deferrals.
It also offers a salary deferral Roth option.
No fees. 800 662-7447 Vanguard.com

[S&D Associates]

The instructions indicates you can contribute 25% up t0 a max of 6,6000 of self-employed income. What form and what line does that go on?

[TaxGuyBill]

Did you miss my previous answer?

[Lion]

25% is on behalf of your employees. For a sole proprietor him/herself you have to subtract the 1/2 SE tax and then use 20% Or, as Bill said, about 18.5%-ish, without the subtraction. Also, as Bill said, Schedule 1 Line 16 or however your software does the data entry to flow to Line 16. Schedule 1 net flows to Form 1040 Line 10. What software do you use?

[New York Enrolled Agent]

TGB gave you the worksheet and the correct placement of the deduction. You need to review what he said.

The rate is 25% but for SE you need to take into account the "employers" contribution.

Bottom line - for an SE taxpayer the rate is 20% of "net earnings from self employment". Net earnings from self employment = net income - 1/2 SE tax.