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Retirement tax questions
@ClintinWC wrote:
I do not understand why TT is limiting our IRA contribution for my spouse (I'm retired) She worked 3 months as an independent contractor in 2020. TT say our MAGI is $154.091 and we can't have a MAGI over $124k while being covered by a retirement plan at work. She is not covered.... she has no W2, she is paid by 1099. (Most other answers say to check box 13 on a W2)
She is over 50 which means she should be able to contribute $7k, which we did (Her earned income for the work she did was $12K.)
Not only is TT saying it isn't deductible it is saying we have to pay an "over contribution" penalty.
Does she have a self-employed retirement plan? SEP, SIMPLE, SE 401(k) reported on schedule C?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
‎April 10, 2021
7:53 PM