My daughter is self-employed, with net business income in 2020 of $6,101 (not much work for a singer in 2020). In the Roth IRA section, TurboTax says her earned income was only $5,670, making the $6,000 she paid into her Roth IRA too high. But IRA rules say earned income includes "net earnings from self-employment," which clearly is $6,101. Why did TurboTax reduce her self-employment income by $431?
Yes, I entered her 1099-NEC details under Business Income & Expenses, not under Personal: Other Common Income.
