Hi! I've input my self-employment income for 2020, but when I add my Roth contribution, it's stating my income as $0. Could this be a bug in the software?

[amy-bluewave]

For added detail: It states the correct number under Income & Expenses, but when I get to Deductions and Credits, my Roth contribution can't be added because it's stating my income as $0. Any help would be greatly appreciated!

[DanaB27]

To clarify, were your net earnings (income minus expenses) from your self-employment $0 or less by any chance? You need taxable compensation to be able to contribute to an IRA.

Please see What Is Compensation- Self-employment income for more details.

[Edited 5/16/2021 | 3:54PM PST]

[amy-bluewave]

Hey Dana- I appreciate the help! Do you mean 'income minus expenses?' My expenses may have exceeded income, so perhaps that explains it. My earnings definitely met the criteria, so I was confused why it was showing up as $0.

[DanaB27 · Accepted solution]

Yes, income minus expenses. Yes, if you expenses exceeded you income, then your loss will disqualify you from the IRA contribution unless you have other taxable compensation.

If you made the contributions already, then you will have to request with your bank to remove the excess contributions plus earnings by the due date (including extensions) to avoid the 6% penalty.

[amy-bluewave]

It did! Thank you so much for your help.