ThomasM125
Expert Alumni

Deductions & credits

I think what you mean is you made an IRA contribution in 2022 for $5,050 and then withdrew the same amount from the retirement plan in 2023. You correctly reported the contribution on your 2022 tax return. If so, the contribution in 2022 should have reduced your taxable income in that year by up to $5,050, assuming the contribution was tax deductible. Based on the code 7 of the 1900-R it would appear that the distribution is taxable in 2023, as it was tax deductible when you contributed it in 2022.

 

So, the distribution in 2023 will be entered as taxable income on your 2023 return.

 

It's possible that you designated the contribution as non-deductible on your 2022 return, in which case when you enter the 1099-R in TurboTax in 2023, you need to indicate that you made non-deductible contributions to your IRA and the program will ask you questions to determine if the distribution is taxable.

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