Two part question:
(1) Will TurboTax determine eligibility for a Roth contribution based on the information I entered?
(2) My AGI consists of passive income (Social Security, dividends and capital gains) and farm income. My farm revenue is about 20,000 but my total expenses are around the same (incl. depreciation etc.). Would I be eligible to contribute based on the farm gross revenues i.e. about 20,000?
Thanks for any responses.
1. Based on all of the entries that you make, TurboTax will determine if any portion of a Roth IRA contribution that you enter is an excess contribution. TurboTax does not make that determination until you enter a Roth IRA contribution.
2. No (or at least not any substantial amount), unless your spouse has compensation to support your IRA contribution and you file jointly. Your compensation from self-employment (farming) that will support your IRA contribution is net earnings. Net earnings are net profit minus the deductible portion of self-employment taxes. With no net profit you have no net earnings and no compensation to support an IRA contribution.