Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
Your contributions to your Roth IRA (or traditional IRA) have to be "earned income".
Either money you earned or your spouse earned.

I don't think the IRS has any requirements that your earned income be documented in any way other than it being shown as earned income on your 1040.

So the $20 you got for shoveling the neighbor's sidewalk counts. (although you'll have to pay income taxes on it)
And the $100 gift card you got for managing the bar's softball tournament counts. (Again - you'll have to pay income taxes on it, and document it as income on your 1040)
I think even the $2000 you made from selling untaxed/unlicensed liquor/mead/wine/beer you made in your basement counts. You just have to put it on your 1040 as income you earned.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.