Schedule C, line 19, donations to my ROTH IRA

[Form8582]

For 2018 taxes (and beyond):

I am an author and receive royalties.

I complete Schedule C.

On part 2, line 19- "Pensions", I wanted to know if it is acceptable (or not) to deposit the max in my ROTH IRA using the proceeds of the royalties and claim a deduction on Schedule C, line 19 for the amount deposited in my ROTH IRA?

[dmertz · Accepted solution]

You can make a Roth IRA contribution based on net profit from self employment, but a Roth IRA contribution is never deductible.

Line 19 is only for deposits made by the employer on behalf of employees other than the self-employed individual to the traditional retirement account of a 401(k) or SIMPLE plan of the company.

[Form8582]

Thanks for the clarification. I do not have employees but I still use the net profit to max out on my Roth IRA.

Is it true that one cannot contribute to either a traditional or a Roth if they are more than 70 1/2....even if they are still working (or receiving royalties)?

[dmertz · Accepted solution]

The age limit only applies to traditional IRA contributions.  There is no age limit for making a Roth IRA contribution, only a modified AGI limit and the requirement to have supporting compensation:

https://www.irs.gov/publications/p590a#en_US_2018_publink1000230980

[Form8582]

Thank you so much!