1099-NEC

[jwyasalon]

I would like my two granddaughters to start Roth IRAs based on the 1099-NEC's they received for $900 for being a educational summer camp counselor (1 week) and $1000 for being a recreational soccer league referee (many games over an 8 week season), respectively.  Both seem to be earned income for a sporadic activity but TT seems to treat it as an unearned hobby income and therefore not a basis for a Roth IRA.  

1. Is that correct?

2. If not, how do they report the 1099-NEC compensation as basis for an IRA without creating a self-employed situation and associated schedule C requirements... or is this not possible as compensation for sporadic activity is not earned income by IRS definition?

[Bsch4477 · Accepted solution]

Correct. Sporadic or hobby income is not earned income for the purpose of contributing to an IRA.