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Are Schedule C income treated as earned income? Why not?

I want to make a payment to my traditional IRA.  TT says my 1099-Misc income is unearned. Why?

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4 Replies

Are Schedule C income treated as earned income? Why not?

Only your net self-employed income (profit schedule 1 line 12 ) minus the deductible part of the SE tax (schedule 1 line 27) is taxable compensation for IRA contributions.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Are Schedule C income treated as earned income? Why not?

I'm confused by this answer.  My net self employment income is over $100k yet Turbo tax is insisting that my net SE income is -0- and denied any deduction for an individual IRA contribution.  Has to be some box checked that I can't find, or Turbo tax is malfunctioning.  Any idea on where to look for this?  (btw, I solved the matter by creating a SEP IRA and funding that, as I couldn't wait to get the TT issue straightened out)

Are Schedule C income treated as earned income? Why not?

What is on Schedule 1 line 12?

Is this excluded foreign income?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Are Schedule C income treated as earned income? Why not?

The SuperUser's answer above is correct. 

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