Rachel_W
Expert Alumni

Retirement tax questions

In order to come up with your Adjusted Gross Income (AGI), you need to subtract 1/2 of your Self-Employment tax from your Schedule C profit.  This is why TurboTax is telling you that you have over contributed by $241.

So your "eligible earned income" for purposes of a Roth IRA contribution will include your wages of $330 (Line 1 of your Form 1040) + your Schedule C profit (Schedule 1, Line 12) - 1/2 of your Self Employment Tax (Schedule 1, Line 27).

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