Jessica is a sole proprietor with one employee. She maintains a SIMPLE IRA in wh

Question

Jessica is a sole proprietor with one employee. She maintains a SIMPLE IRA in which she matches salary reduction contributions at the rate of 3% of the employee's compensation. Where on her tax return does she report her own contribution, and where does she report the contribution she makes on behalf of her employee? Jessica's own salary reduction contribution and employer matches are reported on Schedule C because she has an employee. Jessica's own salary reduction contribution and her own employer match are both reported on Form 1040, the matching contribution she makes on behalf of herself and her employee, as well as the employee's elective deferrals, are all eported on Schedule C Jessica's own salary reduction contribution and her own employer match are both reported on Form 1040, the matching contribution she makes to her employee's SIMPLE is reported on Schedule C Jessica's own salary reduction contribution is reported on Form 1040;, the matching contributions for herself and on employee are both reported on Schedule C. Mark for follow up

Explanation / Answer

Question 1). Answer :- Option B). Jessica's own salary reduction contribution and her own employer match are both reported on Form 1040; the matching contribution she makes on behalf of herself and her employee, as well as the employee's elective deferrals, are all reported on the Schedule C.

Question 2). Answer :- Amount to be reported in tax return for the year 2016 = $ 1,500.

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