Where to Deduct SEP Contributions
If you've ever had questions about where to deduct simplified employee pension plan (SEP) contributions on your federal tax forms, you're in the right place.
SEP contributions made on behalf of employees are deducted by a sole proprietor as an expense on Schedule C. The sole proprietor’s own contribution to the SEP is deducted as an adjustment to income on Form 1040, Schedule 1, line 16 (2021).