Calculating earned income (1099-MISC) in order to fund IRA

Submitted by Ron Rahall on Tue, 2015-08-04 18:23

My daughter worked several months as an “independent contractor” and received her compensation on a 1099-MISC (no taxes were withheld). How is earned income computed in order to determine max that be used to fund a Traditional/ROTH IRA.

thanks

ron



Submitted by Alan - IRA critic on Tue, 2015-08-04 19:56

ron, if her income is being reported on a Sch C and SE, the IRA contribution (earned income )  is limited to Form 1040 line 12 less the amounts on lines 27 and 28 that are attributed to her.

Submitted by Ron Rahall on Wed, 2015-08-05 18:42

tx

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