I have 1099-NEC income, but TurboTax is not allowing me to make a Roth IRA contribution, because it thinks my earned income is zero. Why?

Forum|Forum|2 years ago
March 21, 2024
1 reply
0 views

The 1099-NEC income is cascading to the business income section, but showing zero income where I entered it. I believe this is why it thinks I have no earned income. Can I change this?

TurboTax Online

Best answer by dmertz

The amount of compensation available to support an Roth IRA contribution is net profit (Schedule C line 31) reduced by the amounts on Schedule 1 lines 15, 16 and 20.

Also, any excluded foreign-earned income is not compensation that will support an IRA contribution.

dmertzAnswer

Employee

The amount of compensation available to support an Roth IRA contribution is net profit (Schedule C line 31) reduced by the amounts on Schedule 1 lines 15, 16 and 20.

Also, any excluded foreign-earned income is not compensation that will support an IRA contribution.

bhb59Author

Hi dmertz,

Thank you very much for your reply. You are exactly right and you solved my problem. I maximized my contribution to a Solo 401k and thus could not also make Roth contributions. It's worth noting that the problem was further confounded by the fact that even when I unchecked the "maximize contribution" box for the Solo 401k, the software was still trying to contribute the maximum amount. The only way to resolve it was to go back to the worksheet in "Forms" and uncheck the box there. Again, many thanks for your help!