Can 1099-NEC Compensation amount be used to fund an IRA?

[HI Bill]

Hi! I expect about $10K in 1099-NEC income (non-employee compensation) this year. The 1099-NEC value is the taxable value of products I receive for free (for review purposes), and not actual $. This used to be reported as 1099-MISC income. I officially FIRED last year, and have no other income that would qualify for me to fund an IRA. Does anyone here know if 1099-NEC income would qualify me to fund an IRA?

Thanks!

 

[SevenUp]

Yes. Appears you have been doing this regularly, so you get to report it on Schedule C and pay self-employment tax, but a part of it (see Self-employment income for details) can be used to justify IRA contributions.

 

[HI Bill]

Yes. Appears you have been doing this regularly, so you get to report it on Schedule C and pay self-employment tax, but a part of it (see Self-employment income for details) can be used to justify IRA contributions.

Thanks! I hadn't been able to find the answer elsewhere!

 

[Philliefan33]

An added bonus: when you file a Schedule C you get to claim a deduction for the health insurance premiums that you pay.