I would like my two granddaughters to start Roth IRAs based on the 1099-NEC's they received for $900 for being a educational summer camp counselor (1 week) and $1000 for being a recreational soccer league referee (many games over an 8 week season), respectively. Both seem to be earned income for a sporadic activity but TT seems to treat it as an unearned hobby income and therefore not a basis for a Roth IRA.
1. Is that correct?
2. If not, how do they report the 1099-NEC compensation as basis for an IRA without creating a self-employed situation and associated schedule C requirements... or is this not possible as compensation for sporadic activity is not earned income by IRS definition?
