I have W2 and small business income for my 2025 return, along with $7000 of IRA contributions, $3250 of which are to a Traditional and the rest to a Roth. I have those documents loaded and the $7000 reflected.
However, TT keeps telling me I'm going to have to pay the 6% penalty, because my income is zero. This is not correct. It seems to be taking my negative small business income, which is more than my W2 income, and thinking that my earned income is zero.
This is not correct according to the IRS--590-A (2025) clearly states that small business lossses do not count against earned income.
Self-employment loss.
"If you have a net loss from self-employment, don’t subtract the loss from your salaries or wages when figuring your total compensation."
TT Online is doing the opposite here, though, and I need this corrected so I can file without making the IRS think I went over my contribution limit. I would do it directly on the form, but that's not available in the Online version. Expert help has not be helpful at all, and honestly seems to have no idea what to do.
