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?

[dmertz · Accepted solution]

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.