Roth IRA Contributions

[cvsos]

My wife had $3,200 in wages and $3,156 in business income in 2021.  Our income was below the $198,000 level but when I try to input a Roth IRA contribution of $6,356 (she's over 50) TT says that max contribution is $6,133, so an excess contribution of $223.  Why doesn't she get to contribute the full amount of her earned income?

[dmertz · Accepted solution]

The $3,156 is reduced by the deductible portion of self-employment taxes, $223.

[cvsos]

Thanks!