I keep getting your Roth IRA contribution was a too-high error. I found other previous feedback on TT and I followed their comments -- cleared, and restarted process of selecting self-employed as a business. But I'm still in the same loophole...
You need taxable compensation to make Roth IRA contributions. If you are self-employed compensation is the net earnings from your trade or business (line 3 Schedule 1) reduced by the total of:
If the result is $0 then you cannot make Roth IRA contributions. What are the entries for lines 3, 15, and 16 on Schedule 1?
It might help to delete your self-employment, clear your cache and delete cookies, and then reenter it.
Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA. To avoid the 6% tax on excess contributions, you must withdraw:
You will have to request the withdrawal of the excess contribution plus earnings with your financial institution.
Thanks for the quick response.
On Schedule 1, line 3 is $16,641, line 15 is $1,176 and line 16 is $0.
Also, my taxable income is $0.
I don't have to worry about Schedule 1 line 10 (I have a rental loss) and 1040 line 8 (Other income from Schedule 1, line 10), right?
I will try clearing the cache and deleting cookies. Erasing and restarted several times but have been going through the same issue several times.
Yes, the rental loss on Schedule E shouldn't affect this.
If you are still getting the error after entering all your income then it would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online:
We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.
Are you married? Be sure the Schedule C and IRA contribution is for the same person.