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posted Jun 3, 2019 10:28:49 AM

Restrictions on IRA contributions

TurboTax is reporting that I can't contribute more to my IRA than the amount of my earned income which is zero. I am retired with income from SSA and rentals. Can you please explain this issue and what exactly constitutes earned income? I don't believe I ran into this last year so have tax laws changed?

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1 Replies
Level 15
Jun 3, 2019 10:28:51 AM

Earned income is generally income reported in box 1 of a W-2 (minus any amount in box 11) or net earnings from self-employment on which you would typically pay self-employment tax.  Rental income is normally passive income, not income from self-employment.