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Self-employment loss- W-2 wages- IRA contribution?


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Guest Shelton
Posted

Individual received W-2 wages of $5,000.

Individual is also a sole-proprietor. His tax filing shows self –employment loss.

Can he still make an IRA contribution even tough his tax return shows a loss?

Posted

Yes. Self-employment net losses should not be subtracted from salaries/wages when determining total compensation. This individual may contribute to his/her IRA.

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