How can I generate a worksheet for a SEP contribution?
To generate the Self-Employed Pensions (SEP) Worksheet (Wks SEP) in the View/Print mode of a 1040 return, enter the plan contribution rate on the SEP screen. Be sure to select the appropriate schedule in the drop list for the SEP amount to be included in the relevant QBI calculation worksheet(s).
In Drake18 and prior, use the Self-Employed Pensions section located at the bottom of the SEHI screen.
The deductible amount then flows to Form 1040:
- Schedule 1, line 16 in Drake21 and future
- Schedule 1, line 15 in Drake20 and Drake19
- Schedule 1, line 28 in Drake18
- Line 28 in Drake17 and prior
- For a self-employed individual, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to $58,000 (for 2021; $57,000 for 2019).
- To complete a separate Wks SEP for taxpayer/spouse (or for multiple businesses for a taxpayer), press Page Down
to produce a new SEP screen and use the TSJ box to designate which data belongs to which taxpayer.
- Starting in Drake19 be sure to select the relevant schedule (For box) and Multi-form Code in the Qualified Business Income section to tie the SEP screen to the applicable business.
- SEP and QBI:
- If there is only one business for each taxpayer, the QBI worksheet will show the same amount as Wks SEP for that taxpayer.
- If there are multiple businesses, Wks SEP will show the total for each taxpayer and then the QBI worksheet will show only the amount figured for that business.
- You may choose to enter the plan contribution rate on screen 4, Adjustments, line 16* instead of the SEP screen. Press F1 for Help in that field.
- This does produce Wks SEP in view mode.
- This will split the amount between any QBI worksheets for the relevant taxpayer, based on the income from that business.
- If the taxpayer made a flat-rate contribution, you may choose to bypass the SEP screen and enter the total deductible contribution amount directly on screen 4.
- This does not produce the Wks SEP in view.
- This will split the amount between any QBI worksheets, based on the income from that business.
See Publication 560, Retirement Plans for Small Business, for more information regarding SEP contributions and deduction limits.
*line 15 in Drake20 and Drake19, or line 28 in Drake18 and prior