Custodial IRA

My 13 YO granddaughter worked for me on my rentals. She earned $390 & wants to open a Roth IRA. I sent her a 1099 NEC. This is earned income. TurboTax says that she is not eligible for a Roth IRA. I don't understand.

posted

On her return did you fill out a Schedule C for the 390? You have to have a Net Profit on Schedule C to count as earned income to contribute. But since it's under $400 I don't know if that will count since she's not paying any self employment tax on it. You don't pay self employment tax unless the Net Profit is over $433.