Can self-employed 401k contributions be deducted on Schedule C? If a self-employed person has self-employed LLC?
- Anonymous8 months ago
- EvaLv 78 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.
- A HunchLv 78 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.