Hi @DanaB27 ! My situation is very similar to the original post, but for Tax Year 2022. Also, my Roth IRA declined in value between the time of the excess Roth IRA contribution (made in calendar year 2022 for tax year 2022) and the time of my withdrawal of the excess contribution (in calendar year 2023, but before I've filed my 2022 tax return). My contribution was $7,000, the entire amount of which is an excess contribution. Using IRS regulations, my financial institution determined the amount to be returned to me. Because the value of the Roth IRA declined, the amount returned to me was less than $7,000. For the sake of this post, let's say that amount returned was $4000. So, I created the 2023 1099-R to be reported on my 2022 tax return, and entered $4,000 in box 1 (total distribution) and $0 in box 2 (earnings). Notably box 2 would not allow me to enter a negative number (to represent the loss). I entered codes J and P in box 7 and then answered the subsequent TurboTax question that this Form 1099-R is a 2023 1099-R.
My questions:
1. Do I need to complete any other fields in the Form 1099-R - payor info, and boxes 3-6 and 8-16, or do I just leave them all blank? No taxes were withheld (obviously) by my financial institution.
2. When entering my Roth IRA contribution (in the Deductions & Credits section of TurboTax), do I enter $0, $4000, or $7000? I contributed $7,000, but it came out as $4,000 (given the decline of my IRA). But, in a sense, I didn't make an IRA contribution, since I have withdrawn it ahead of tax filing for the contribution year. It seems if I say $7,000, it will seem like I've made a net $3,000 contribution since I took out only $4,000. I'm guessing that I enter $4,000 for my Roth IRA contribution, but I really don't know.
Thank you!
