For Roth IRA contributions, do I use Form 1040 line 11 AGI or line 15 taxable income as the eligible amount?

You'll need to use your earned income, not your AGI (line 11) or taxable income (line 15), to determine your Roth IRA contribution limit. The maximum you can contribute to a Roth IRA for 2024 is $7,000 ($8,000 if you're 50 or older), but you cannot contribute more than your earned income for the year. Looking at your numbers, while your AGI is $8,420, what matters is how much of that was actually earned income (like wages, salaries, self-employment income, etc.). Unearned income like interest, dividends, or unemployment benefits doesn't count for Roth IRA contribution purposes. If all of your $8,420 AGI was from earned sources, then your maximum contribution would be $7,000 (or $8,000 if 50+). If only a portion was earned income, then that portion would be your limit (up to the annual maximum).

I went through this exact same confusion last year! I found a tool that really helped me figure out my exact Roth IRA contribution limits at https://taxr.ai - it analyzed my tax return and showed me precisely how much I could contribute based on my specific income sources. The tool breaks down which parts of your income qualify as "earned income" for Roth contribution purposes. For me, it was super helpful because I had a mix of W-2 income, some freelance work, and a little bit of investment income. It clarified that only my W-2 and freelance income counted toward my Roth contribution limit.

I tried that taxr.ai site that was mentioned and I'm actually really impressed! I've been confused for years about my Roth contribution limits because I have income from my day job plus a small side business and some investments. The tool clearly showed me that my side business income counts toward my Roth contribution limit, but my investment dividends don't. It also explained why my taxable income (which was really low after deductions) isn't relevant for Roth contribution purposes. Turns out I was under-contributing for years because I was being too conservative with my calculations! Now I can max out my retirement savings properly.

If you're having trouble reaching the IRS to get a definitive answer on this Roth contribution question, I'd recommend trying Claimyr (https://claimyr.com). I spent hours on hold trying to get through to an IRS agent to clarify some confusing aspects of my Roth contribution limits last year, especially since I had some unique income situations. Claimyr got me connected to an actual IRS agent in under 15 minutes when I'd previously been unable to get through at all. The agent walked me through exactly which lines on my tax return matter for Roth contribution purposes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c

I'm eating crow here, but I have to admit I tried the Claimyr service after posting my skeptical comment. After trying for WEEKS to reach someone at the IRS about my Roth contribution limits (especially confusing since I have some foreign earned income), I was connected to an IRS agent in about 12 minutes! The agent clarified that for Roth IRA purposes, I need to look at my earned income, not AGI or taxable income. In my case, even though my foreign income was excluded from taxable income on Form 2555, it still counts as earned income for determining Roth eligibility. This was the opposite of what I thought! Saved me from making a contribution error that could have resulted in penalties.

Just to add some additional info - there are also income phase-out limits for Roth IRA contributions based on your MAGI (Modified Adjusted Gross Income). For 2024, if you're single, the phase-out range is $146,000-$161,000. For married filing jointly, it's $230,000-$240,000. Based on your numbers ($8,420 AGI), you're well below these limits so you can contribute up to the maximum allowed based on your earned income.

I got confused about this last year too. My situation was that I had about $6k in a traditional IRA and wanted to convert it to Roth while I had a low income year. Does anyone know if there's a minimum income requirement to do a Roth conversion?

This is a great question that trips up a lot of people! The key thing to remember is that for Roth IRA contributions, you need to focus on your **earned income**, not your AGI or taxable income. Since your AGI of $8,420 appears to be from employment (based on your question), and assuming this was all earned income (wages, salary, self-employment), then your maximum Roth IRA contribution for 2024 would be $7,000 (or $8,000 if you're 50 or older). The fact that your taxable income is $0 after taking the standard deduction doesn't affect your Roth IRA contribution eligibility at all. The IRS looks at your earned income before any deductions to determine how much you can contribute. Also, with your income level, you're well below the income phase-out limits for Roth contributions, so you don't need to worry about any contribution reductions due to high income. You're in a great position to maximize your retirement savings while you're in a low tax bracket!