topic Turbo tax deluxe is not considering miscellaneous income line 8 on 1040 as wages for traditional IRA contributions. Why not? in Retirement tax questions

Turbo tax deluxe is not considering miscellaneous income line 8 on 1040 as wages for traditional IRA contributions. Why not?

jandmbl — Tue, 03 Feb 2026 08:26:20 GMT

I think turbo tax is wrong and needs fixed.

Re: Turbo tax deluxe is not considering miscellaneous income line 8 on 1040 as wages for traditional IRA contributions. Why not?

DoninGA — Mon, 24 Feb 2025 17:19:11 GMT

A deductible contribution to a Traditional IRA flows to Schedule 1 Line 20. The total from Schedule 1 Part II Line 26 flow to Form 1040 Line 10.

Re: Turbo tax deluxe is not considering miscellaneous income line 8 on 1040 as wages for traditio...

BillM223 — Mon, 24 Feb 2025 17:26:09 GMT

The IRS says, "Generally, compensation is what you earn from working." Thus, you must have earned income to contribute to an IRA.

If the miscellaneous income had actually been earned income, it probably should have been described as self-employment income on Schedule C.

Or more simply put, miscellaneous income is not "wages". Wages are entered on a W-2 or in Schedule C.

Re: Turbo tax deluxe is not considering miscellaneous income line 8 on 1040 as wages for traditional IRA contributions. Why not?

jandmbl — Sun, 02 Mar 2025 23:30:39 GMT

The answer to the question is if you are NOT covered by a 401/retirement plan you can put the earned income under 1h on the 1040 and that allows you to do an IRA. If you are retired and collecting a pension but are working where you are NOT able to contribute to a 401/pension plan then you are eligible to contribute to an IRA. If you put it under other earned income schedule 1 8 z it will reject an IRA.