Thanks so much for your reply!
My Schedule C net profit is $5000 and the Self Employment Tax I must pay is $1200, making the Self Employment Deduction $600. I have no W-2s.
I understand all this but the thing that is making me crazy is TT is not calculating this properly. For some reason TT is using only the profits made on one Sch C and not subtracting out the losses on the second Sch C and not subtracting out the Self Employment Deduction.
TT says I can make a $7000. I am over 50.
This is what it should be:
Sch C-1: $7000 profit
Sch C-2: $2000 loss
Net profit on Sch Cs: $5000
Less Self Employmt Deduction: -600
Allowable Roth IRA contribution: $4400
If I intentionally put in a higher contribution, over $7000, TT kicks in and produces Form 5329 and calculates the penalty.
?? I don't know. Any ideas on the calculation discrepancy?
Thanks!!!
