Other/misc income not counted as Earned Income
So I made $20k of other/misc income and $1500 from a W2. When I went to declare my Roth IRA contribution of $7000. It says I have $5500 of excess contributions, meaning it only counts my w2 as my only income and completely ignores my other/misc income
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Comments
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What type of income was the miscellaneous/other income? You can only base IRA contributions on earned income. If you didn't identify it as earned income in the software, you can't use it to determine your IRA contribution limit.
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it was money I made as a salesman but my employer pays me in cash and not a w2 or 1099 so I put it in other income
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If you want it to count as earned income, it would have to be reported on Schedule C as self-employment income.
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