Income from an education loan is not compensation from work which is required to contribute to an IRA.
As far as I can tell, that was previously correct until 2019 when the omnibus spending bill passed which now allows taxable fellowship/scholarship income to be applied toward IRA.
From the IRS 590-A instructions for IRAs:
"However, for tax years beginning after 2019, certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These amounts include taxable non-tuition fellowship and stipend payments made to aid you in the pursuit of graduate or postdoctoral study and included in your gross income under the rules discussed in chapter 1 of Pub. 970, Tax Benefits for Education.
The taxable amount is allowed towards a ROTH as shown in IRS pub 590a. Is your scholarship showing as taxable income? Would you please preview your return and check the taxable income and then let us know if the program is in fact showing a taxable income at least equal to the contribution? To view your return:
Yes, my stipend is registered as taxable income. I see from perusing the forums that this is an issue other users have had, so I presume it is a Turbotax software issue.
I ran your scenario through TurboTax and I did not receive a penalty for excess contribution to a ROTH IRA. I noticed that you are asked to enter the amount of your scholarship income that is for post graduate studies, I am wondering if you saw this and entered the proper amount? You see the screen in the form 1098-T entry area.
I'm facing this same issue but don't see this screen? How do I access it?
If the income is not actually taxable, you won't see the screen. Take a look at your tax forms and see how it is showing up.