Turbo Tax says I made an excess Traditional IRA contribution, but I'm over 50 and can contribute $8000

Forum|Forum|11 months ago
April 13, 2025
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Turbo Tax says I have an excess contribution of $1000, and is trying to charge me a penalty of $60.

TurboTax Home & Biz Windows

VolvoGirl

Do you have enough earned income to contribute that much? You need W2 wages or a Net Profit on Schedule C.

If you have self-employment income you can only contribute up to your net profit reduced by the deduction allowed for the ER portion of your self-employment taxes. See IRS publication 590A (page 39 for ROTH) https://www.irs.gov/pub/irs-pdf/p590a.pdf

So check 1040 Schedule 1 line 14. You have to deduct that amount from your Schedule C Net Profit. That will give you the allowed contribution for the 1099Misc income.