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Earned or Net Income for Roth IRA
I’m self-employed and receive 1099-NEC from a company.
Since my income is not much this year, it’s confusing which to consider for Roth IRA. I already filed my tax return and which line should I look for when deciding how much I can contribute to my Roth IRA?
From 1040 (Federal Return Summary)
- Total Income vs Adjusted Gross Income
- Should I subtract Self-employment Tax from either Total Income or AGI?
From Schedule C
- Gross Income (line 7)
- Net profit (line31)
Thank you.
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February 24, 2022
4:02 PM