Deductions & credits

Yes, for the explanation statement, you will enter that you withdrew the 2022 excess contribution of $7,000 with a loss of $2,285.

If you had a $2,285 loss on your $7,000 contribution then you are considered to have withdrawn the full excess contribution of $7,000. You will enter $7,000 as withdrawn by the due date on the penalty screen in the IRA contribution interview.

To create a Form 1099-R in your 2022 return please follow the steps below (for a loss):

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2022?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution minus loss)
7. Box 2a enter $0
8. Box 7 enter J and P
9. Click "Continue"
10. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
11. Click "Continue" after all 1099-R are entered and answer all the questions.