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Level 2
February 18, 2024
Solved

ROTH IRA contribution vs income

  • February 18, 2024
  • 2 replies
  • 51 views

I earned enough to make the full ROTH IRA contribution for 2023.  Our MAGI is below the limit, so I'm allowed the full contribution, which I made.  I entered (and double-checked) my earned income in TurboTax online, and entered (and double-checked) the ROTH contribution.  However, TT tells me I contributed too much, and on that screen, shows an earned income number *lower* than what I entered and can still see if I backtrack through the program to my earned income entry.  Is this a glitch?  Is there something else that would cause that screen to show a lower earned income number than what I entered and than what is still showing elsewhere in TT?

    Best answer by dmertz

    Expert Reviewed

    Is your compensation from self-employment?  If so, the amount of self-employment income available to support IRA contributions is net profit minus the amounts on lines 15 and 16 of Schedule 1.

     

    If your compensation is instead on Forms W-2, the amount available to support IRA contributions is the amount in box 1 minus any amount in box 11.

    2 replies

    dmertzAnswer
    Level 15
    February 18, 2024

    Expert Reviewed

    Is your compensation from self-employment?  If so, the amount of self-employment income available to support IRA contributions is net profit minus the amounts on lines 15 and 16 of Schedule 1.

     

    If your compensation is instead on Forms W-2, the amount available to support IRA contributions is the amount in box 1 minus any amount in box 11.

    Level 2
    February 20, 2024

    Thank you very much.  I missed subtracting the self-employment credit.  I appreciate the help!