Excess Roth IRA Contribution

[Anonymous]

Doing my son's taxes.  He had $1,111 of other earned income in 2020 (from a 1099-NEC, confirmed on Line 11 of the 1040), but the program is telling me that his earned income is zero when I try to set up a Roth IRA contribution of $1,000.  His standard deduction is $1,100 (Line 12) so his taxable income is $11.

Thanks!

[VolvoGirl · Accepted solution]

Line 11 is the Adjusted Gross Income.  What line above does the 1099Nec income show up on?  It needs to be on Schedule C as self employment income to count as Earned Income to qualify for IRA contributions.  Schedule C Net Profit goes to Schedule 1 line 3.  If it shows up on schedule 1 line 8 as Other Income that is wrong.  Delete the 1099NEC and try to get it entered as self employment.

How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or use any of the Desktop CD/Download programs.