Yes, you are correct that your IRA contributions should be limited to $3,464, which is the total wage amount for the year.
You are also correct in assuming that TurboTax must be counting the $11,349 late wages penalty as earned income. You said you didn't get your 1099-MISC, but you entered it anyway, so the way it was entered must have included it in your earned income.
The simplest solution would be to leave your return the way it is and just voluntarily limit your IRA contribution.
The alternative is to change the way your 1099-MISC was entered to make sure it is not counted as earned income.
The first step would be to delete the entry that you made for the 1099-MISC that you did not get. If you need help doing that, please provide some details of where you entered it.
Then enter the amount here:
- Open your return and select Federal on the left side menu.
- Select Income & Expenses.
- Scroll down the list and find the section called, Less Common Income, expand the section.
- Scroll all the way down and select Miscellaneous Income, 1099-A, 1099-C.
- Select Other reportable income at the very bottom.
- Answer Yes and click Continue.
- Enter a description and amount on this page, click Continue.
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