1099-NEC

Forum|Forum|5 years ago
January 27, 2021
7 replies
25 views

I earned $12k in 2020 and it was reported in a 1099-NEC. When I enter my Roth IRA contribution of $1500, it classifies it as an excess contribution and says my earned income is zero.

bobaloisiAuthor

Level 2

CORRECTION: when I enter my wife's contribution of $1500

JohnB5677

Level 15

Your spouse can contribute to any IRA based on your income alone. However, it cannot exceed your joint taxable income.

You stated that you received $12K on a 1099-NEC. That's countable as income, but your deductions may have reduced your income to the point where your wife was no longer eligible.

The IRS says: If you file a joint return and have taxable compensation, you and your spouse can both contribute to your individual IRAs provided.

Your total contributions to both your IRA and your spouse’s IRA may not exceed your joint taxable income
or the annual contribution limit on IRAs times two, whichever is less.
It doesn't matter which spouse earned the income.

Roth IRAs and IRA deductions have other income limits.

See IRA Contribution Limits and IRA deduction limits.

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