Line 19 on Schedule C of the tax form relates to “Pension and Profit-Sharing Plans,” which refers to contributions you made during the tax year to a qualified pension or profit-sharing plan on behalf of yourself or your employees.
Pension and profit-sharing contributions that you may be able to deduct on Line 19 include:
- Contributions to a 401(k) plan: This includes contributions made to a 401(k) plan, which is a retirement savings plan that allows employees to contribute a portion of their salary on a pre-tax basis.
- Contributions to a SEP-IRA: This includes contributions made to a Simplified Employee Pension (SEP) Individual Retirement Account (IRA), which is a type of retirement plan for self-employed individuals and small business owners.
- Contributions to a SIMPLE IRA: This includes contributions made to a Savings Incentive Match Plan for Employees (SIMPLE) IRA, which is a type of retirement plan for small businesses with 100 or fewer employees.
It’s important to note that there are certain requirements and limitations associated with deducting pension and profit-sharing contributions. For example, the contributions must be made to a qualified plan, and the amount you can deduct may be limited based on various factors, such as the type of plan, your income, and the amount of contributions you made.
If you have any questions about how to report pension and profit-sharing contributions on your tax return, it’s a good idea to consult with a tax professional or accountant.