Tax treatment for Pension contribution!

awkan · #1 (**permalink**) 01-24-2007, 01:59 PM

I am a self-employed IT consultant, I understand I can make a contribution to a pension plan to save taxes.

The question, I have is, where do I take the deduction on Turbo Tax, is the deduction on Schedule C itself or does it go as an adjustment to income on Page 1 of the 1040?

The former treatment would be better for me as I can save S/E Taxes!!

TaxGuru · #2 (**permalink**) 01-25-2007, 09:36 PM

In general, a self-employed business person who has a one man operation, cannot usually deduct his or her own pension contribution on Scheduel C.

Unfortunately, the deduction is reported as an adjustment to income on page 1 of form 1040. Thus, there is no saving from S/E taxes!!!