You are going to enter a substitute Form 1099-R in TurboTax to report the return of contributions. You can enter the amount you contributed of $6,500 in box 1 on that form. Since it is more than the amount the broker will report the IRS won't be concerned about it, they would only be concerned if the amount was less.
To enter a refund of excess IRA contributions in the current year follow these steps:
- Go to the personal income section of TurboTax
- Find the Retirement Plans and Social Security menu option
- Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
- Choose Add Another 1099-R
- Choose I'll type it in myself
- On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R
- Enter the distribution amount in box 1 of the substitute 1099-R
- Enter the earnings in box 2(a)
- Enter code "P" in box 7 *add code "J" if from ROTH IRA
- When asked about the year on the form 1099-R, say it is for the year following the year you are working on
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