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My daughter's income in 2022 was $2808. she is my dependent, but wants to start a roth IRA so she is filing this amount for that reason. how much can she contribute?

 
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My daughter's income in 2022 was $2808. she is my dependent, but wants to start a roth IRA so she is filing this amount for that reason. how much can she contribute?

Did she get a W2 for it or a 1099NEC?  If she got a W2 she can contribute all of it to a IRA.  

If their only income is W2 and under 12,950 they do not have to file a return except to get back any withholding taken out.


Filing requirements for a dependent
https://ttlc.intuit.com/community/children-dependents/help/do-i-need-to-file-my-own-taxes-if-i-m-a-d...

My daughter's income in 2022 was $2808. she is my dependent, but wants to start a roth IRA so she is filing this amount for that reason. how much can she contribute?

@lemonade510-gmai the Roth contribution limit would be $2808.  Whether or not she is your dependent has no bearing on the situation.  

 

Since this is a Roth IRA, none of it is tax deductible so it does not drive the reason to file. 

 

Further, if the income was reported on a W-2, there is no filing requirement. 

if the income was reported on a 1099-NEC, then there is a filing requirement.  

My daughter's income in 2022 was $2808. she is my dependent, but wants to start a roth IRA so she is filing this amount for that reason. how much can she contribute?

the reason for filing is to document that the contributed amount was an allowed amount.

The tax software calculation is a cross-check on your own understanding of the allowed amount.

 

This is mostly an issue for 1099-NEC, less so for W-2

 

 

@lemonade510-gmai 

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