This may be my last time using TurboTax. I am very frustrated. First call: 40 minutes on hold, describe the problem, then told she can't help me and will transfer me to an expert. Told phones are jammed and I will get a call back in 10 minutes. Received callback but there was no one there and I was disconnected. Called back again. Spent 10 minutes trying to navigate through the automated system, then was on hold for another 40 minutes. Again, described the problem and was told they could not help me but will transfer me to another expert. Told I would get a callback in 14 minutes. I did and described the problem, AGAIN. She tried to help me but could not and decided I needed a tax expert to solve the problem. Transferred again. This time Intuit want another $60 for me to talk to an expert. The problem? Enter an IRA contribution of $6000. Turbotax tells me my AGI of $128k does not fall between $118k-$133k to qualify. Also states my earned income is -0-. How can I have an AGI of $128k and an earned income of 0? Also, as I continued on I can across a page telling "you might be able to deduct $5500 with an IRA contribution" What the hey? On one page Turbotax tells me I can't make a contribution and on another page, most likely advertising to get more money from me when I open an IRA through Mint.com. they tell me I can. This seems to be a problem with Turbotax. And Intuit wants to charge ME to fix the problem? I think I've had it.
I realize your frustration and I understand, please accept my apologies.
First, let me explain the difference between earned and unearned income.
Earned Income is wages, net earnings from self–employment, certain royalties, honoraria, and sheltered workshop payments. Basically money earned by services you perform.
Unearned Income is all income that is not earned from your services, such as Social Security benefits, pensions, unemployment benefits, interest income, dividend income, and capital gains.
What can you contribute to your IRA for 2017?
For 2015, 2016, 2017 and 2018, your total contributions to all of your traditional and Roth IRAs cannot be more than: $5,500 ($6,500 if you're age 50 or older), or your taxable compensation for the year, if your compensation was less than this dollar limit.
What amount of your contribution can you deduct for 2017?
This depends on whether you are in a covered pension plan at work (check your W2 box 13).
I hope I have helped with your concerns and questions.