I had a w-2 and also self employment income in 2024. I took most of this income (excepting SE tax) as a Roth contribution. How can turbotax recognize my SE for the roth?

[sarah-mccabe-tx]

It only counts the W-2 as employment income and says I will have a penalty.

[VolvoGirl]

Add your W2 box 1 and your Net Profit on Schedule C minus the SE tax I explain below.   And are you married?

If you have self-employment income you can only contribute up to your net profit reduced by the deduction allowed for the ER portion of your self-employment taxes. See IRS publication 590A (page 39 for ROTH) https://www.irs.gov/pub/irs-pdf/p590a.pdf

So check 1040 Schedule 1 line 14. You have to deduct that amount from your Schedule C Net Profit. That will give you the allowed contribution for the 1099Misc income.

And make sure the Schedule C and ROTH Contribution are entered for the same person if you are married filing Joint.   Or maybe you have a penalty for having too much income to contribute.

See IRS publication 590A (page 39 for ROTH) to see if you are allowed to contribute to the ROTH IRA.

https://www.irs.gov/pub/irs-pdf/p590a.pdf