What is earned income for the IRA Contribution Limit?

Your IRA contributions are limited by your earned income. Earned income includes the following:
  • Wages, salaries, etc
  • Commissions
  • Self-employment Income (reduced by any self-employment tax deduction you're receiving)
  • Taxable alimony you received
  • Nontaxable combat pay
If you're Married Filing Jointly, the earned income reported on your tax return limits the total amount you and your spouse can contribute to an IRA.

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