Drake Tax - 1040: Generating the SEP Worksheet
Article #: 13160
Last Updated: November 08, 2024
Tip If you want to override the total amount, use the override field at the bottom of the screen.
The deductible amount then flows to Form 1040:
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Schedule 1, line 16 in Drake Tax 2021 and future
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Schedule 1, line 15 in Drake Tax 2019 and Drake Tax 2020
Notes:
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For a self-employed individual, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to:
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$70,000 for 2025
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$69,000 for 2024
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$66,000 for 2023
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$61,000 for 2022
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$58,000 for 2021
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$57,000 for 2020
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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.
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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.
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SEP and QBI:
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If there is only one business for each taxpayer, the QBI worksheet will show the same amount as Wks SEP for that taxpayer.
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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.
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See Publication 560, Retirement Plans for Small Business, for more information regarding SEP contributions and deduction limits.