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Not all of Income is being acknowledged when computing the Roth IRA contribution limit

Forum|Forum|1 year ago
April 5, 2025
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My income is through a fellowship and thus I do not have a W-2.

As a result, I have put in my income as "Other reported income". When it comes to taking into account my Roth IRA contributions, TurboTax states that my income is $0 and thus I have exceed my contribution limit.

I tried removing and adding the income, but that doesn't seem to change the calculus.

Is there something I'm missing or is this a bug in TurboTax?

IRA

Best answer by AmyC

If you enter it in as scholarship income, it will go through. The Scholarship income would be treated as EARNED income. Follow these steps:

Open to federal Deductions & Credits
Locate EDUCATION
Select Expenses and Scholarships
Tell the program you don't have a 1098-T, that you have an exception, don't enter any expenses, enter the excess scholarship on the screen that asks if you received a scholarship you have not yet reported.

This will put your income on Sch 1 and Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) shows this appropriate for your IRA.

AmyCAnswer

If you enter it in as scholarship income, it will go through. The Scholarship income would be treated as EARNED income. Follow these steps:

Open to federal Deductions & Credits
Locate EDUCATION
Select Expenses and Scholarships
Tell the program you don't have a 1098-T, that you have an exception, don't enter any expenses, enter the excess scholarship on the screen that asks if you received a scholarship you have not yet reported.

This will put your income on Sch 1 and Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) shows this appropriate for your IRA.

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F

fmachado1Author

Hi Amy, thank you for the help!

I seem to be doing something wrong, because the only place I can put down the income is in the screen below, which seems to suggest that the income is non-taxable (since I have been making estimated tax payments the platform suddenly suggests additional thousands of dollars of return).

Is there a different screen where I should be inputting this information?

If so how do I get to it?

Once again, thank you for your help!

Best,

Francisco