In 2021, prior to tax filing date, I have contributed to an Roth IRA. However, Turbo Tax alerted me that I made an excess contribution due to income restrictions. The excess amount was returned prior to tax filing date. Why is the 1099-R for 2021 showing the returned excess contribution as Gross Distribution? When I enter into Turbo Tax it is considered income and increases my total gross income. Is this correct? Is there anything I need to do differently?
