Your earned income for Roth contribution purposes also takes into account 1/2 of your self-employment tax.
Net income from Schedule C= $6941
Less 1/2 of SE tax= (490) = {($6941 *.9235) *.153}/2
The result in Turbo Tax seems correct.
Self-employment income. If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of:
The deduction for contributions made on your behalf to retirement plans, and
The deduction allowed for the deductible part of your self-employment taxes.
