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New Member
posted Apr 14, 2025 12:34:07 PM

Turbotax is saying my IRA contribution isn't permitted because it's greater than my earned income of "$0." Why are they saying this is my income?

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1 Replies
Level 15
Apr 14, 2025 1:08:15 PM

Earned income (or compensation) is income earned from working, providing a service, etc.  It is usually your W-2 wages in box 1 (minus box 11) or your net income from self-employment.  Other types of income, like investments, pensions, and so on, are "unearned" income because they are not from working. 

 

You must have income earned from working to contribute to an IRA.