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June 5, 2019
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Can I use hobby income to offset roth IRA contributions with no other income

  • June 5, 2019
  • 1 reply
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I contributed $5,500 to a Roth IRA but had no actual income in 2018 and therefore going to receive a tax penalty for the contribution on my taxes. If I declare prize money from bike races as hobby income would I then be allowed to contribute that dollar amount to my Roth IRA?

Best answer by DawnC0

No, unfortunately, hobby income is not considered compensation or earned income.  

1 reply

DawnC0
DawnC0Answer
Employee
June 5, 2019

No, unfortunately, hobby income is not considered compensation or earned income.