I used the TurboTax free edition to help do my son's 2023 taxes, which listed his AGI as $6,005. I was planning on making a contribution to a Roth IRA for him using that amount, but got the following message.
"You contributed $6,005 to a Roth, but your earned income was only $5,857. Roth contributions can't be more than earned income, which means you have an excess contribution of $148."
The $5,857 was all from his W-2's. The additional $148 was from a 1099-DIV and 1099-INT. If I understand correctly, IRA contributions are based on MAGI which is mostly the AGI with some potential things added back in. So if his AGI was $6,005, why is TurboTax telling me that I cannot contribute that amount?
