turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I am being penalized for my Roth IRA contribution because the software doesn't recognize income from 1099-G and 1099-MISC.

The message I get after putting in my Roth IRA contributions for 2015 says that I can't contribute more to a Roth IRA than my income (zero).  This is not including my income which was reported on a 1099-G and 1099-MISC.  How do I get this to recognize that I did not contribute more than my income?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
dmertz
Level 15

I am being penalized for my Roth IRA contribution because the software doesn't recognize income from 1099-G and 1099-MISC.

To be able to make a Roth IRA contribution, you must have sufficient eligible compensation to support the contribution.  Income on Form 1099-G and Form 1099-MISC is only eligible compensation if it is reported as income from self-employment on Schedule C and your Schedule C shows a net profit.  Your net income from self-employment is your net profit minus the deductible portion of your self-employment taxes.  Your eligible compensation is also reduced by any deductible contributions to self-employed retirement plans.

See What Is Compensation:  https://www.irs.gov/publications/p590a/ch01.html#en_US_2015_publink1000230355

DS30
New Member

I am being penalized for my Roth IRA contribution because the software doesn't recognize income from 1099-G and 1099-MISC.

According to the IRS, you don't have to report your Roth contributions anywhere on your tax return. So just delete this information from your tax return.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question