1. Let's discuss the points of view based on the IRS. IRS contribution requirements states: Wages, salaries, etc.
Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans).
This felt vague so I looked at: What Isn’t Compensation?
Compensation doesn’t include any of the following items.
Earnings and profits from property, such as rental income, interest income, and dividend income.
Pension or annuity income.
Deferred compensation received (compensation payments postponed from a past year).
Income from a partnership for which you don’t provide services that are a material income-producing factor.
Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b.
Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs.
Which indicates that the IRS will see the W2 boxes 1 and 11 and figure out a taxable income allowed for an IRA. It doesn't seem to fit under the wages but it is not prohibited under not compensation. You may have found a gray area. Since you have the w2, I lean towards eligible.
2. The program changes and the tax laws change.
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