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In addition, for our SEPs I could add $8k ($40k * 20%) and my wife could add $200 ($1k * 20%).

A caution here. I know you're dealing in round numbers here, but if your Schedule C bottom line is a $40,000 net profit, you cannot make an $8,000 SEP contribution. You must reduce the $40,000 by your deduction for 1/2 of the SE tax before applying the 20%.

Rule Your Retirement Home Fool
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