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April 14, 2025
Question

Turbotax is saying my IRA contribution isn't permitted because it's greater than my earned income of "$0." Why are they saying this is my income?

  • April 14, 2025
  • 1 reply
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1 reply

Employee
April 14, 2025

Earned income (or compensation) is income earned from working, providing a service, etc.  It is usually your W-2 wages in box 1 (minus box 11) or your net income from self-employment.  Other types of income, like investments, pensions, and so on, are "unearned" income because they are not from working. 

 

You must have income earned from working to contribute to an IRA.