Hello,
Thank for this info. I'm preparing my 2020 Federal Tax return using Turbo Tax Premier. I contributed to a traditional IRA and then immediately converted it to a Roth in 2020. I received a 1099-R for this for 2020. After I follow the instruction in this post to both enter the 1099-R in the income section AND I entered the information as a non-deductible traditional IRA contribution on the deduction side of Turbo Tax. I have no traditional IRA's with any balances. Turbo Tax is saying that my IRA contribution is not permitted because my contribution is more than my earned income which is $0. But I own an S Corp (real estate sales brokerage) that certainly has income and profit and was reported on schedule 1 from the corporations K-1. Turbo Tax says this regarding additional info on this subject.
What counts as earned income?
Earned income includes:
- The amount in box 1 of your W-2s
- Commissions
- Self-employment income
- Taxable alimony payments you receive
- Nontaxable combat pay (look on your W-2 in box 12 with a code of Q)
My K-1 income from my corporation is 100% self employment and/or commission income. So how can my earned income be $0 per Turbo Tax?
I must be doing something wrong. HELP...
