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No. of Recommendations: 4
Every dollar you contribute from your profit reduces your taxable income and self-employment taxes.

Ira, are you sure about this? I have never seen a change in my net SE income or SE tax when I pay into my SEP. It is an adjustment to income on pg 1 of the 1040, not the Sch C. If my SE tax is supposed to go down, I have some amended returns to work on.


You're right. Case of putting fingers in gear before brain.

Ira
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