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My W2 income is $9,000. Turbotax is saying my wife

When I tried to enter $7,000 for my Roth IRA and $2,000 for my wife's Roth IRA, TurboTax said our combined earned income was only $7,940 and we would be penalized for any contribution she makes to a Roth IRA over $940. Why is the amount lower than my income and how does TurboTax figure our combined earned income?
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6 Replies

My W2 income is $9,000. Turbotax is saying my wife

Is any of the W-2 income IHSS?

My W2 income is $9,000. Turbotax is saying my wife

I do not know what IHSS is, so I would say no. I am a Baptist Minister and I do not see IHSS listed anywhere on my W2. 

My W2 income is $9,000. Turbotax is saying my wife

 What is the amount in Box 1 of your W-2?

My W2 income is $9,000. Turbotax is saying my wife

The amount of line #2 is $9,000

My W2 income is $9,000. Turbotax is saying my wife

The amount of line #1 is $9,000, not line #2. I goofed. 

My W2 income is $9,000. Turbotax is saying my wife

Please clarify:  What is your wife’s earned income?  Did she receive a Form W-2, as well?  Is she self-employed? 

I ask because there are limits on the amounts of contributions you can make, based on taxable compensation.  Please see the IRS’ Retirement Topics - IRA Contribution Limits for more information.

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