A couple years ago, I reported adjusted gross income of 6,110, with EIC of 461, yet it let me contribute 6000 to the Roth. I took SALT n had no other income except minor interest. If nothing changed since, why the EIC of 461 didn't make the 6000 into the Roth, an excess?
If the Earned Income credit this time shows as 499 when I enter income of 7k, why Turbotax arrives at 6505 as the earned amount, resulting in excess contribution of 495? If it's because the 499 rounds off, wouldn't it round off to 500, or how does that work?
If you already made an excess contribution to your Roth, n then made earnings in the Roth, "which dollars" comes out doesn't matter, but rather it's the total excess plus its earnings? If you contributed 550 extra, then u remove 550, but how does 1 calculate what the (excess) earnings would be? You have to return ALL earnings for the ENTIRE year, even if you made, for example, 10k off of 100k, you lose the entire 10k because of the insignificant 550?
How and when do you know if you're in trouble and/or owe the 6% penalty if Turbotax misses it since you didn't enter it because it was in the "deductions" section that you thought was irrelevant because you take the SALT?
If some of your income was in cash, you can include it with the rest of your self employment income, even if you don't report it when you file your LA City business taxes because that income was derived outside of LA and/or too insignificant (if this question is beyond your expertise, just let me know and I understand)?
So even if all u did was earn 7k, totally single, no deducations etc. would u still go through everything in Turbotax? I thought I was worrying too much all these years by doing that.
So if you're filing for the 1st time (so no old Turbotax to test with before) n educate yourself by learning the Roth contribution limit as 7k, n earn 7k, wouldn't u contribute 7k to Roth, n find out the hard way that the EIC results in your Roth having excess contribution? It's like I understand you saying to test it or research, but how would you know to test or research something like that, if you didn't know you had to test or research something like that in the first place?
Thanks.
