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December earned income paid on January check; which year's Roth contribution for teenager below max contribution?
My child's paycheck for work hours performed in late December 2024 was issued on January 3, 2025, so this check's amount did NOT appear on her 2024 W2. She contributed the total amount EARNED (vs PAID) in 2024 to her 2024 Roth. Turbo Tax is now insisting that she has overcontributed to her 2024 Roth because her W2 only reflects the amount on the paychecks issued in 2024... but this is NOT her EARNED income for the year! It's a difference of between ~$1,300 & ~$1,500. I know she could probably contribute the ~$200 difference to a 2025 Roth, but she will make over $7,000 this year and I want to get her the max she is entitled to.
How do I reconcile this in Turbo Tax?
‎January 29, 2025
6:57 PM