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<< I was informed that I can ONLY buy into ROTH IRA when I can show earned income. At present time I'm providing gardening services, selling plants,home grown vegetables and fruit, babysitting, house sitting for $$

Question #1. How do I report my earning? >>

Earnings from self-employment are reported on Schedule C. Wages from domestic employment are reported on line 7 of the 1040. From the limited information provided, the only thing I'd feel fairly sure about is that the sales are self-employment. The gardening services probably are self-employment, and the babysitting and housesitting may very well be domestic employment wages. There is guidance in IRS Publication 533.

Question #2. Do I need a business license to do what I 'm doing. >>

That depends on local law.

<< I only wanted to show earned income ($2000-$2005/year)sohat I can buy into ROTH IRA? Question #3. Is that OK? >>

Is is OK to only earn $2,000? Sure. Is it OK to report only $2,000 if you earned more? No. Is it OK to report $2,000 when you didn't earn it? No.

TMF ExRO
Phil Marti
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