I sold MLP holdings in 2022. A portion of those sale proceeds are characterizied as "ordinary income". There are some inconsistencies in K1 verbage from the MLPs. One characterizes my gain as part capital gain and part "ordinary gain". The other has a category for "gain subject to recapture as ordinary income". I believe I have the information correctly entered into TurboTax. The result on Form 4797 Part 2, is an "ordinary gain" of $10,143. That carries directly to Form 1040 Schedule 1 (additional income), Line 4. In line 5 I have an additional entry for partnership income totaling -$3143. This results in a Form 1040, Line 8 total of $7000 in "other income".
I didn't have any wages or other "earned income" in 2022. Is this $7000 of "other income" considered "earned income"? If it is earned income is my total earned income $10,143 or the net figure of $7000?
Lastly, if I didn't have any other real wages does this $7,000 (or $10,143) qualify me for a Roth contribution in 2022?
Thanks in advance for any clarity and insights you can provide.
Shydig
