what do I categorize a SEP IRA contribution

Hello there, fierceprecision. Figuring out how to categorize a SEP IRA contribution can be a little tricky, but it’s an important step for keeping your records and taxes in order.

Because SEP IRA contributions are reported on Line 28 of Form 1040, not on Schedule C, there isn’t an option to categorize them in QuickBooks Self-Employed.

You’ll need to manually mark the SEP IRA contribution as a personal expense or transaction so it’s properly reflected when you complete your Form 1040. It’s also a good idea to check with your accountant to make sure everything is entered correctly. If you don’t have an accountant, you can find an expert here.

Then, follow these steps to categorize the transaction:

1. Go to the Transactions menu.
2. Find the specific SEP IRA contribution.
3. Select Personal as the type.
4. If you want to keep a paper trail, add a Note or Tag labeled “SEP IRA” so you can easily find the total come April.
5. Select Save or Apply.

It’s important to record these contributions accurately to avoid overestimating your tax liabilities.

For more details on Schedule C categories, take a look at this article: Schedule C and expense categories in QuickBooks Solopreneur and QuickBooks Self-Employed.

If you have any additional questions to ask, please don’t hesitate to reach out. We’re here to assist you.

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