In 2007 the only income I had was from Interest, Dividends, and Capital Gains (long & short). No W-2's, no 1099-MISC's.
Can I contribute to an IRA and deduct the contribution?
TIA
In 2007 the only income I had was from Interest, Dividends, and Capital Gains (long & short). No W-2's, no 1099-MISC's.
Can I contribute to an IRA and deduct the contribution?
TIA
No.
No.
Only if you have earned income.
Well, blah... blah that I can't contribute/deduct. I appreciate the answer...
A point of clarification please... MFJ. Husband has W2, SS and 1099Int income etc. and a 401k at work. Wife has SS and 1099Div, Int and B w/Short&Long Cap Gains and no prior IRA. Taxcut is implying wife can make contribution to/open a $5000 IRA. Assuming this is enough to go on... would that be correct? Thanks. Geo. Salisbury
That wasn't the original question which was answered that only earned income can be used to fund an IRA up to the maximum allowed contributation.
In case of MFJ, it doesn't matter which spouse has the earned income, both spouses can contribute to their own IRA but the combined total cannot exceed the total amount of earned income.
So, if the husbands W2 income is earned income, and is more than $5000, then Taxcut is correct.
Yes. A nonworking spouse can make an IRA contribution based on the compensation income of the working spouse. The rules for whether the contribution is deductible differ for the earner and the nonworking spouse.
Ira Smilovitz
Thanks. I thought the way I was reading it was saying that TC was okay. Sometimes you just need someone to agree with you. Sorry about stealing the thread. I meant to tweak the Subject for my variation but forgot. Geo.
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