TurboTax

Level 1

Solved

My daughter's income in 2022 was $2808. she is my dependent, but wants to start a roth IRA so she is filing this amount for that reason. how much can she contribute?

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Best answer by VolvoGirl

Did she get a W2 for it or a 1099NEC? If she got a W2 she can contribute all of it to a IRA.

If their only income is W2 and under 12,950 they do not have to file a return except to get back any withholding taken out.

Level 15

Did she get a W2 for it or a 1099NEC? If she got a W2 she can contribute all of it to a IRA.

If their only income is W2 and under 12,950 they do not have to file a return except to get back any withholding taken out.

Level 15

Expert Reviewed

@lemonade510-gmai the Roth contribution limit would be $2808. Whether or not she is your dependent has no bearing on the situation.

Since this is a Roth IRA, none of it is tax deductible so it does not drive the reason to file.

Further, if the income was reported on a W-2, there is no filing requirement.

if the income was reported on a 1099-NEC, then there is a filing requirement.

Level 15

the reason for filing is to document that the contributed amount was an allowed amount.

The tax software calculation is a cross-check on your own understanding of the allowed amount.

This is mostly an issue for 1099-NEC, less so for W-2

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