If the taxpayer who made contributions to a retirement plan such as a SEP, SIMPLE, or Keogh plan as a self-employed individual, they may be able to claim a deduction on their tax return for those contributions.

The TaxAct program offers the Publication 560 Worksheet for qualified self-employed individuals to calculate their maximum deductible contribution limit. At the bottom of this worksheet, you can enter the actual contributions which should not exceed your deductible contribution limit. The TaxAct program will transfer the amount to Schedule 1 (Form 1040), Line 15 (changes to your return could cause this calculation to be automatically revised and could change the amount of your deduction).

Certain individuals do not qualify to use this worksheet. See IRS Publication 560 to determine whether you qualify.

To complete the Publication 560 Worksheet in the TaxAct Professional Editions program, follow the steps below:

1. From within your TaxAct return, click Federal. 
2. Click Deductions, and select Self-employed SEP, SIMPLE, qualified plans from the list of summary topics.
3. Click Pub. 560 Worksheet. 
4. Complete the worksheet, then click the X to close.  
5. Once you have completed and exited out of the worksheet, you can choose to manually enter the calculated deduction for contributions made to self-employed retirement plan(s) OR use the worksheet in Publication 560 select to use the amount from the worksheet in Publication 560. Click Use the Publication 560 Worksheet calculation or enter the manually calculated amount in the entry field.

Related Links

• Individuals – Self-Employed Retirement Plans