Question

is 1099 statutory employee income "taxable compensation"?

Forum|Forum|5 years ago
May 4, 2021
1 reply
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My wife wants to contribute to her IRA (for 2020), but we're unsure what constitutes "taxable compensation". As an insurance agent, she receives both W-2 and 1099-NEC from her employer. Clearly the W-2 income qualifies as taxable compensation, but is the 1099-NEC amount also within that category?

TurboTax Home & Biz Windows

macuser_22

Employee

Net self-employed income after subtracting the deductible part of the SE tax and any self-employment retirement plan contributions is compensation. Plus any W-2 box 1 income minus box 11.

That would be the 1040 schedule 1 line 3 minus line 14 & 15.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**