My wife wants to contribute to her IRA (for 2020), but we're unsure what constitutes "taxable compensation". As an insurance agent, she receives both W-2 and 1099-NEC from her employer. Clearly the W-2 income qualifies as taxable compensation, but is the 1099-NEC amount also within that category?
Net self-employed income after subtracting the deductible part of the SE tax and any self-employment retirement plan contributions is compensation. Plus any W-2 box 1 income minus box 11.
That would be the 1040 schedule 1 line 3 minus line 14 & 15.