UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75776  
Subject: Re: IRA, must I file a tax return Date: 8/3/1999 6:50 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Huldah, and welcome. You asked:

<<A single dependent child has bonafide earned income of say about $2000 but is NOT otherwise required to file a 1040 since earned income is less than $4250, has no investment income and nature of work is unlikey to be called self employment and subject to $400 limit on nonreporting.

YES OR NO? AND CITE PLEASE. Tax return is required in order to take a ROTH IRA?>>


Nothing in the tax code says you must file an income tax return in order to contribute to an IRA. The only requirement for the contribution is earned income, and that may or may not be taxable. In the example you cite, it is not, so no return is required. Nevertheless, that income may still be used as the basis for an IRA contribution. IMHO all you need do in this case is retain appropriate evidence that the contribution stemmed from earned income to rebut any potential challenge by the IRS in the future that the contribution was inappropriate.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement