Earned income Vs. Adjusted Gross Income in determining Roth contributi

[Guest AlanKwiatkowski]

I'm attempting to determine the maximum contribution to a Roth for my self-employed son. He was 1099 (Misc.) for 2000 for modeling which is his total earned income (He had some dividends as well.) Can he contribute 2000 to a Roth? or can he only contribute his AGI? He must pay 283 in self employment tax which 142 (half) is deductible, reducing his AGI. Turbo tax seems to be using the AGI.

[Guest DAVETAX]

You must reduce your $2000 self employment income by 50% of your SE tax to arrive at your earned income. In your son's case his AGI and earned income is the same figure $1,858.

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DAVID SNYDER, CPA