401K and QBI

Technical topics regarding tax preparation.
#1
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I'm running some scenarios for 2021 and could use some assistance. I have never had a sole proprietor with a solo 401k. I am inputting a Schedule C net income of $60,000, also has wages of $100,000 from another employer (no retirement plan). Assume taxpayer is over age 50, MFJ, and makes maximum 401(k) contribution allowed. I calculate he would get a schedule 1 deduction for $37,425 for the 401(k), correct? When calculating QBI, I don't understand the income amount the program calculates, which is QBI of $27,885. It begins with the $60,000, deducts 1/2 of s/e tax of $2,877 and $29,238 for the s/e pension. Anyone know how the $29,238 is calculated? I'm totally missing something or have something coded incorrectly. Thanks!
 

#2
sjrcpa  
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Seaside CPA wrote:makes maximum 401(k) contribution allowed

Quantify this.
 

#3
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Assume maximum elective deferral and maximum employer match allowed by law (I know would have to go by plan document).
 

#4
lckent  
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My calculations on ProFX:
Sched C Net $60,000
SE Tax $6,914 (assumes wages subject to FICA & Medicare =$100,000)
Max 401(k)=$37,309 ($60,000-1/2SE $3,457=$56,543*20%=$11,309+$19,500+$6,500=$37,309
QBI $19,234 ($60000-1/2SE $3.457-401(k) $37,309=$19,234
CPA, Retired
 

#5
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Thank you Ickent! My SE tax was off from yours, and it appears that I had something input in another screen for another scenario I had run (although I could not find the input on the screen). I deleted the client and started fresh and am now coming up with your numbers; those numbers make sense! Thanks again - I'm not losing it!
 


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