I get an annual W-2, which shows the money I get from a former employer's long-term disability policy as wages (Box 1 with nothing in Box 11). This has been the case since 2009. I have also gotten SSDI since that time, so my employer's policy brings (pays the difference to bring) me up to a certain percentage of my prior salary. I had a SEP-IRA until 2022 when the money from this account was transferred into a traditional IRA account.
For the first time, TurboTax told me I could, and recommended that I, contribute $8k to my IRA for the deduction. It seems to be telling me, similar what Terri Lynn said (but contrary to what DoninGA said), that the W2 employer's disability money is earned income and that I CAN contribute to my IRA because of this. So:
(1) Can I contribute to my IRA based on this W2 disability income? (I'm asking again because of the conflicting advice in the thread)
(2) If so, why is this the first time TurboTax has advised me in this way, given that my situation has been the same for the past 15 years (e.g., did something change in the tax code)?
