Very down year for my business in 2017. About $12,000 in AGI, but will owe no taxes. Can I still make a Roth contribution for 2017 (and pay no tax on the contribution)?

Forum|Forum|7 years ago
June 4, 2019
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Critter

Level 15

OK... you are mixing up apples & oranges ...

First to make a contribution you must have earned income. Not sure what the $12K AGI you mentioned is comprised of.

Next, if you qualify to make a ROTH contribution you cannot deduct it on the return. It cannot reduce your AGI.

And lastly ... if your income is low enough that the standard/itemized deduction & personal exemptions zeros out your income then you will pay no federal taxes.

Critter

Level 15

Yes ... you are eligible... that was not in question... and there is no fine print you are missing. You are looking for shadows that don't exist.

Even if you only made $6500 then you could still make a contribution of $6500 even though you would not have any taxable income.