We are retired but also had "other reportable income" for helping to settle a family estate. The IRS clearly says this is taxable income. My wife was paid $7000 for this, which we put under "other reportable income" where TurboTax actually says to put it "if you're not in the business of being an executor." We put $6200 into a Roth for her. Yet apparently TT doesn't recognize this $7000 as earned income because it says my wife has overpaid $6200 into the Roth. This looks to me like a software glitch. TT, please fix this ASAP.
She needs to file it as self employment income on Schedule C to count as earned income for IRA deductions.
Keep in mind that treating the $7,000 as income from self-employment will subject it to self-employment tax of $989. Subtracting the deductible portion of self-employment tax from $7,000 leaves $6,505 available to support the $6,200 IRA contribution.
Other Income is not "compensation"
As macuser22 would tell you, you're filing an incorrect (fraudulent) return.
Would you clarify? I don't know what you mean (regarding incorrect return).