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New Member
posted Feb 21, 2025 11:01:46 AM

Program says my roth contribution of 7000 is too high when my earned income is over 7000. Why is the program calculating my earned income wrong?

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1 Best answer
Level 15
Feb 21, 2025 11:19:23 AM

Are you self-employed?  Compensation from self-employment that will support any kind of IRA contribution is net profit reduced by the sum of deductible portion of self-employment taxes and the deduction for self-employed retirement contributions.

 

Compensation on a W-2 that will support an IRA contribution is the amount in box 1 minus any amount in box 11.

1 Replies
Level 15
Feb 21, 2025 11:19:23 AM

Are you self-employed?  Compensation from self-employment that will support any kind of IRA contribution is net profit reduced by the sum of deductible portion of self-employment taxes and the deduction for self-employed retirement contributions.

 

Compensation on a W-2 that will support an IRA contribution is the amount in box 1 minus any amount in box 11.