Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
MarkieZ
Returning Member

Roth IRA Contribution for Self-Employed

I want to contribute $5,550 to Personal Roth IRA. Self-Employed Schedule C income = $58,000. Subtract $10,000 contributed to Individual 401K and 1/2 SE taxes and enough money is left for $5,500. TurboTax is allowing contribution to Individual 401k Roth IRA, but not Personal Roth IRA. Earned Income calculates to Zero. I should be able to contribute money to either account. Why is TurboTax not including self-employed income in earned income calculation?

12 Replies
AmyC
Employee Tax Expert

Roth IRA Contribution for Self-Employed

You should be allowed to claim both and it should be calculating and allowing. The section requires diligence to successfully navigate. You may want to contact a specialist that can work through that section of the return with you.Please review your entries.

 

Related:

Where do I enter my Traditional or Roth IRA? for your personal ROTH

Where do I enter my SEP IRA contributions? for your 401K ROTH

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
MarkieZ
Returning Member

Roth IRA Contribution for Self-Employed

Calculates correctly if $5,500 is contributed to 401k Roth IRA. Doesn't calculate correctly if $5,500 is contributed to Personal Roth IRA instead. All entries checked carefully. Does Turbotax Home & Business know Schedule C income is self-employed (sole proprietor) income even if a business name is entered?

AmeliesUncle
Level 12

Roth IRA Contribution for Self-Employed

Look at Line 3 of Schedule SE.  Does that show the $58,000-ish for the profit of your business?

MarkieZ
Returning Member

Roth IRA Contribution for Self-Employed

$58,000-ish for profit of business on Schedule C, calculates on Schedule SE taxes, Form 8995 for small business, and deduction of business use of home. According to IRS, self-employed business income is earned income.

MarkieZ
Returning Member

Roth IRA Contribution for Self-Employed

Yes, it shows $58,000-ish on Line 3 of Schedule SE.

macuser_22
Level 15

Roth IRA Contribution for Self-Employed

What is the total of Schedule 1 line 3 minus line 14?

 

Where is you enter the Roth 401(k) contribution?  It does not get entered into the IRA contribution section.

**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.**
AmeliesUncle
Level 12

Roth IRA Contribution for Self-Employed

Is your overall income too high?

https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2019

 

If that seems right, what EXACTLY is the error message or problem that you see?

MarkieZ
Returning Member

Roth IRA Contribution for Self-Employed

401k Roth: Business > Less Common Business Solutions > Self-employed Retirement. Personal Roth: Personal: Deductions & Credits > Retirement and Investments > Traditional and Roth IRA Contributions. Personal section is not finding self-employed earned income from Business section.

MarkieZ
Returning Member

Roth IRA Contribution for Self-Employed

Total income not too high. Plenty of $ after Schedule 1 line 3 minus line 14. Personal section is not acknowledging self-employed income from business section as earned income.

abrinkman
New Member

Roth IRA Contribution for Self-Employed

did you receive an answer on this? I am having the same problem ...

 

MarkieZ
Returning Member

Roth IRA Contribution for Self-Employed

No, I haven't received a good answer regarding this issue with TurboTax.

macuser_22
Level 15

Roth IRA Contribution for Self-Employed

It is actually 1040 Schedule 1  line 3 minus line 14 AND line 15.

 

Look at the "Roth IRA Contribution Worksheet" line 7 for the calculated earned income for Roth.

**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.**
Dynamic AdsDynamic Ads
Privacy Settings
v