I had low w/ both my gross & net income being less than $5,500 last year. I am now trying to determine my max amount for a Roth contribution for 2018. I think my limit would be my net profit from my contracting business. However, I think I could be wrong and it might be taxable income (line 10 on 1040) or possibly something else.
Can anyone confirm or correct me? Thank you.
If your only compensation is from self-employment, it's net profit minus the deductible portion of self-employment taxes and any self-employed retirement deduction. In other words, Schedule 1 line 12 minus lines 27 and 28.
Awesome. I am assuming the other income adjustments do not matter than for the Roth ira contribution. Just the portion for self employment tax and self-employed retirement deduction. Is that right? Thank you for your help.
Right. Since your AGI is low, you will likely benefit more from the Roth IRA contribution that you are proposing than from a traditional IRA contribution.