My daughter is a student with only self-employment income. She contributed the maximum allowable amt of $7000 to her Roth IRA in 2024, because she earned at least this much from her self-employment business and she falls well under the MAGI limit for a single taxpayer. Yet TurboTax says she over contributed to her Roth IRA and calculates a small increase in her federal tax due (presumably due to a penalty?).
Relevant #'s: Self-employment income=$11,837
MAGI=$52,164
Am I missing something? Should she just not enter her Roth contribution into the program this year? (Although this will prevent her from tracking her cumulative Roth contributions with TurboTax)
