Earned income definition

Submitted by Brian Devers on Thu, 2017-03-23 15:00

New situation on me – client has –
W-2 income
Self Employment LOSS

Client’s CPA/tax preparer relayed the client’s IRA contribution was limited to the net of the W-2 income and the Self Employment loss.

After researching, I can’t find any examples or guidance.

Any definitive answer by someone???

Thanks



Submitted by Alan - IRA critic on Thu, 2017-03-23 16:29

Pub 590A, p 6 states this:

Self-employment loss. If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation.

Submitted by Brian Devers on Thu, 2017-03-23 18:27

thanks much.

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