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Why doesn't TurboTax reduce cost basis for 1099-R early distribution of Roth IRA?
In 2020 I took an early distribution of my Roth IRA (I'm not 59 1/2). The initial investment I contributed isn't included on my 1099-R form since I had rolled over the funds from my 401K into the brokerage account. I have tried to manually enter the amount of my contributions but TurboTax isn't calculating the difference and lowering my actual taxable income. When I enter my contributions nothing happens. No numbers change. I even tried inputting the amount into different lines (lines 5 and 9a). Why is this happening?
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‎February 2, 2021
8:25 PM