A taxpayer chooses to deduct SEP retirement plan. And in so doing, some of his SEHI adjustment is lost. Can the "lost" portion be added to Schedule A medical deduction?
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If you're saying what I think you're saying, then Yes. However, knowing how you usually present issues to us, maybe No.
If your client contributes to a SEP and therefore decreases his SE profit as computed for SEHI adjustment purposes which in turn decreases the cap on the SEHI adjustment so that the tentative adjustment is higher than the cap/SE profit, then your software should be moving the "excess" to Schedule A.
Did you see the results of the adjustment with AND without a SEP contribution? If so, follow the flow.
I will admit that trying to answer what I think you're asking has confused me, and now my head hurts! So wait for someone with more SE experience to weigh in.
Are you asking a tax question, or are you asking how to enter in your software? -
Looks like a YES answer to me.Comment
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[QUOTE=Lion;n312782]If
If your client contributes to a SEP and therefore decreases his SE profit as computed for SEHI adjustment purposes which in turn decreases the cap on the SEHI adjustment
{QUOTE]
Lion - reduces gross income, not SE profit - agree?Comment
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