I may have contributed an excess to my Roth IRA in 2021.
As I understand it, the max I can contribute is the lesser of my earned income or $6000.
(I don't come close to the max threshold MAGI of $125,000.)
I started my TurboTax return for 2021 and my AGI is ~$9000 from a taxable grant for a summer research intern position at the NIH (reported on a 1099-G, Box 6). That is the extent of my earnings/income for 2021.
Just curious: is this grant considered earned income or unearned/passive income since it is a grant? I was not considered an employee of the NIH hence no W-2, but nor was I considered self employed.
My taxable income was calculated to be $0. I guess after the standard deduction this reduced my taxable income to $0? I am 22 yrs old filing as single person.
So is taxable income the same as earned income and since my taxable income is $0, my max Roth IRA contribution is $0 for 2021. I contributed $6000 to my Roth for 2021 so if earned income=taxable income, then I had an excess contribution of $6000, but again the question is does earned income =taxable income??
@dmertz
