1099-NEC and Roth
Client who is a minor made $750 at part time job last year. Received 1099-NEC. Is he eligible to make a Roth contribution?
Client who is a minor made $750 at part time job last year. Received 1099-NEC. Is he eligible to make a Roth contribution?
Permalink Submitted by Alan - IRA critic on Thu, 2024-02-22 23:12
Why was’t this reported on a W-2? What type of service was provided?
Permalink Submitted by Kevin Kennedy on Fri, 2024-02-23 14:11
Not sure why. He was an umpire for little league games.
Permalink Submitted by Alan - IRA critic on Fri, 2024-02-23 21:25
Even though a minor, he is self employed and if his net earnings from SE are over $400, he must file even though he will not owe any income tax. I doubt that he has expenses of $350 to eliminate the SE tax, but his eligible Roth contribution would be his net earnings after expenses less 1/2 his SE tax.