Is a tax refund eligible for a Roth contribution?

[mj-askformarcusj]

In 2022, taxpayer was employed and filed form 1040, receiving a refund of $1000.  He contributed $800 of the refund to his Roth IRA.  In tax year 2023, taxpayer received no earned income, only social security.  Turbo Tax 2023 will not allow the taxpayer record his contribution stating it can not be claimed because there is no earned income of record for 2023.  However the 2022 tax refund is earned income and eligible for contribution into a Roth IRA.

[MinhT1]

You must have earned income to contribute to a Roth IRA account.

The tax refund isn't earned income and didn't allow you to contribute to a Roth IRA. If you contributed to a Roth IRA, the contribution was based on your earned income (such as wages or self-employed income) reported for tax year 2022.

Please read this TurboTax Help article on What's earned income?

[mj-askformarcusj]

A tax refund, void of any credits, is earned income returned due to overpayment of taxes (e.g. A state income tax refund is considered earned income on the following years federal tax return).