Can self-employed 401k contributions be deducted on Schedule C? If a self-employed person has self-employed LLC?

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  • Anonymous
    8 months ago

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  • Eva
    Lv 7
    8 months ago

    Doesn't matter whether you are a sole proprietor or a sole member LLC. If you are reporting on a Schedule C the taxation is the same. Your 401k contributions are not deductible on Schedule C. They go on the 1040 Schedule 1 as an adjustment to income. Make sure your contribution is calculated properly . It also has an effect on your QBI deduction. If you don't know what those things are, have an accountant do your taxes.

  • 8 months ago

    401K contributions are deducted off of your 1040, regardless of whether you are self-employed or not. 

    You pay FICA taxes on Schedule C which is prior to your 401K contributions, just like if you were employed. 

    Social Security and Medicare wages are higher than earned income wages. 

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