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?
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
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?
Look at Line 3 of Schedule SE. Does that show the $58,000-ish for the profit of your business?
$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.
Yes, it shows $58,000-ish on Line 3 of Schedule SE.
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.
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?
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.
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.
did you receive an answer on this? I am having the same problem ...
No, I haven't received a good answer regarding this issue with TurboTax.