If you enter the form 1099-R in TurboTax correctly, with the code J in box 7, your distribution will not show as taxable in TurboTax. You may be subject to a penalty for early withdrawal, but you can avoid this by indicating that you held the investment for five years and you contributed the same amount as you withdrew. You will see these questions in TurboTax after your enter the form 1099-R.
You can view your form 1040 and look on line 4(b) to make sure the distribution is not showing as taxable. You can look on schedule 2, line 8 to see if you are receiving any penalty for your distribution.
You can view your form 1040 while working in the online version of TurboTax by following these steps:
While working on your return in the Federal section of TurboTax:
1. Choose the Tax Tools icon on your left menu bar
2. Tools
3. View Tax Summary
4. Choose the Preview my 1040 on your left menu bar
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