The problem is that when I do that, put in $7000 contribution as if it were from me instead of from my spouse, this is what TurboTax says:
You must have at least as much earned income as the amount of your IRA contribution.
Example: You contributed $4,000 to your IRA. Your earned income is $3,500. You are allowed to contribute only $3,500 to your IRA, and the remaining $500 becomes an excess contribution.
This "earned income" isn't what the IRS says for a Roth; they say it is based on MAGI, Modified Adjusted Gross Income. Her gross income from piano teaching is $17,000 but her net income is around $8000. My pension does not count toward contributions so she, based on MAGI of $17,000 minus the MAGI adjustments, was able to contributed $7,000 each Roth. But Turbotax says I can't contribute more than our combined income which, minus my pension, was around $7,000. If this is correct, how do I get TurboTax to not say I have to take a distribution before I file our taxes?
