Get 50% OFF QuickBooks for 3 months*

Buy now
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Simplify payday and set payroll to run automatically on QuickBooks.Explore Intuit QuickBooks Workforce
legendarylawncarebend
Level 1

how do I categorize 401k contributions in my deductions?

Solo owner/operator, have already maxed 401k as an individual and my estimated taxes are high because I have been categorizing it as a transfer.

1 Comment 1
Dandie_A
QuickBooks Team

how do I categorize 401k contributions in my deductions?

Hi, Legendary.

 

In QuickBooks Self-Employed, 401(k) contributions made directly from your business income cannot be categorized as a deductible business expense. The IRS treats 401(k) contributions as a personal deduction rather than a business expense since they're part of retirement savings.

 

Since you’ve already maxed out your 401(k) contributions and are managing estimated taxes, I recommend consulting a tax professional. They can ensure you’re taking full advantage of other retirement savings options or deductions that may apply to your situation.

 

Let us know if you have further questions or need guidance on other aspects of QBSE.

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.

Need to get in touch?

Contact us