19 — Pension and Profit-Sharing Plans Updated for tax year 2025

What this line means

Employer contributions you made to retirement plans for your employees. This includes contributions to SIMPLE IRAs, SEP IRAs, and 401(k) plans on behalf of your employees. Your own retirement contributions as a sole proprietor do not go here — they go on Schedule 1 of Form 1040. This line is only for the employer portion of contributions you made for people who work for you.

Does this apply to you?

• You set up a SIMPLE IRA for employees and make required employer matching or nonelective contributions
• You contribute to a SEP IRA on behalf of employees
• You sponsor a 401(k) plan and make employer matching contributions for employees
• You maintain any qualified retirement plan and fund employer contributions for employees

Easy to overlook

Your own SEP or solo 401(k) contribution does not go here As a sole proprietor, your own retirement contributions are deducted on Schedule 1 of Form 1040, line 16 (SEP, SIMPLE, qualified plans). Putting your own contributions on Schedule C line 19 improperly reduces your self-employment income and self-employment tax. This is a common error the IRS catches. ¹ [SOURCE: IRS Schedule C instructions — Line 19]

SIMPLE IRA mandatory employer contributions If you set up a SIMPLE IRA, you are required to either match employee contributions dollar-for-dollar up to 3% of compensation, or make a nonelective contribution of 2% of each eligible employee’s compensation. These mandatory employer contributions are deductible here. Failing to make required contributions triggers excise taxes. ² [SOURCE: IRS Publication 560 — Retirement Plans for Small Business]

Watch out for this

Deducting your own retirement contributions on Schedule C line 19 instead of Schedule 1 of Form 1040. This incorrectly reduces your self-employment income. Your own contributions reduce income tax but do not reduce self-employment tax — the Schedule 1 deduction handles this correctly. The Schedule C line handles it incorrectly.

Related lines on your return

• Schedule 1, Line 16 — Form 1040 — Where your own SEP, SIMPLE, or solo 401(k) contributions go
• Line 14 — Schedule C — Employee benefit programs; other employee benefits go there
• Line 26 — Schedule C — Wages; employee salary and wages go there