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So, to be clear, if I have $10K in 1099-misc income and $2K in expenses, I could contribute $2K as an "employer-side" contribution and get the deduction? (10k - 2k, * 25% rule).

Almost. The 25% is calculated on your income after taking into account the deduction for the SEP contribution. We can do some algebra, or you can just take my word for it that the actual SEP contribution works out to 20% of your self-employment income.

I would NOT be able to contribute "employee-side" since I am already maxed on a ROTH?

Your Roth does not enter into the picture here. Or, more correctly, you need to deal with the SEP first, then see if you are eligible for a Roth contribution. Making Roth contributions has no effect on your SEP.

--Peter
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