TurboTax says I can open a traditional Ira for $7000 this year...I don't think this is correct

Good Morning All
I am self-employed in primarily a wedding based business, and although I did some business during both 2020 and 2021, I also collected unemployment insurance.

Self Employment
On my Schedule C I'm reporting gross sales of $27,647, and an additional $1348 was reported as 1099 Non-employee wages, so my gross revenue was $28,995.

After deduction all of the common expenses, including depreciation, I came down to a tentative profit of $2570, which was absorbed by my home office deduction.

Unemployment Insurance
I received $14,659 as reported on a 1099 G Form

Since Traditional IRA contributions must be from active income - wages, profit from business, etc, I was surprised when TurboTax indicated I could open a $7000 IRA for 2021 based on this income (I'm 63 years old)
and I'm not sure it's correct.  It'll be a much bigger problem if I open the IRA and have it disallowed later.

Would appreciate any clarification.

Thank you.