Why does TT say I have no earned income when there is a profit on schedule C,

Forum|Forum|1 year ago
March 26, 2025
1 reply
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Schedule 1 line 3 has an amount, from sched C for self employed. How could that not be earned income? It seems to be ok as earned income for making Simple contribution.

But other places, like when attempting a Traditional IRA, TT tells me it isn't allowed because I have no earned income.

Form 8995, QBI, it show the amount same as sched C amount/Simple contribution as a negative number. Similar to what it did the previous year(s?) and a negative carryover from previous year. So each year the negative number carryover get larger.

What is explanation for this? Some misplaced check mark? How does my earned income (schedule C), which I am paying income tax on, become a negative number, no income, in other places?

TurboTax Home & Biz Windows

KeshaH

If you're using TurboTax Desktop, review the Earned Income Worksheet (Earned Inc Wks) to see how your earned income was calculated.

If the amount shown still don't make sense for you, we can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Click on Online in the top menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states that are included on the return.

astro46Author

token is below. (I am astounded that TT doesn't allow copy of the extremely long token number, i had to use a screen shot)

Please tell me why TT thinks that I have no earned income in regards to taking traditional ira, making traditional IRA excess and non-deductible. I already took a SIMPLE ira in relation to earnings. My understanding from IRS website is that one can take both, that one doesn't affect the other. Can you explain this to me?

Also, I contacted IRS for status of my refund. They lowered my refund by 25% (ie: increased taxes owed) because social security wrongly calculated. I checked, number that I entered is number from SS box 5. TT did the incorrect calculation(?).

thanks

VolvoGirl

@astro46 About Social Security

What usually happens is the IRS changed some other income on your return. Like the taxable amount of a 1099R you got or you missed entering some income. Like if a 1099R got entered on the wrong line 1040 line 4 or 5, the IRS would miss it and think you didn’t report it.

By increasing your other income it made more of your SS taxable.

Or There is a new question this year asking if you lived in a foreign place. People have been answering it wrong or skipping it. Go back through the Social Security entries.