2023 Roth IRA Contribution

I have a client (files single) who had an AGI of $21,534 in 2023. She had $1,392 of self-employment income reported on Schedule 1, part 1, line z not on a Schedule C.

 

Her self-employment tax was $196 and the deductible part of the self-employment tax was $98.

 

What is her maximum 2023 Roth IRA contribution? Is it $1,392 (income)-$196 (self-employment tax)=$1,196.



Without a Sch C to properly report self employment income and Sch SE, there is no documentation to support an IRA contribution. The max Roth contribution would be 1392 less 98 (1/2 of SE tax) or 1294 if the self employment income was properly reported, but the IRS may ignore this due to the small amount of income. Line z should also include a description of the income being reported.



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