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2055
Level 1

traditional ira contribution

I have had very little income from my work as a touring musician in 2020. I made some money from royalties and selling cds. But those earnings are not enough to cover traditional IRA contributions for myself and my wife.

However I did earn money from dividends and interest. I also earned money from unemployment. Which of these incomes can be counted as earned income that I can use to make IRA contributions?

2 Replies
VolvoGirl
Level 15

traditional ira contribution

Sorry only W2 wages and a Net Profit on Schedule C count as earned income and some Schedule K-1 income.  Not interest or dividends or unemployment.  

DoninGA
Level 15

traditional ira contribution

Neither unemployment compensation or interest and dividend income is taxable compensation.  So they cannot be used for contributing to an IRA.

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