Hello,
I had contributed 6K into a Roth IRA in 2021 and accidentally went over the income limit. For my 2021 taxes this was not reported at all since the amount was using after-tax dollars. In 2022 I had removed that amount, as advised to do so since I was over the limit that was able to contribute.
Since the market went down the amount was only equal to $4500 when it was taken out. I had a 1099-R with J in box 7 for 2022 (gross distribution filled by no taxable amount determined). When I enter this document on my tax return it says I now owe $1500 because of it and then I keep filling out the additional questions stating that I contributed 6K excess before 2022 and then it asks how much of the excess credit of $1500 do I want to apply to my 2022 IRA contributions. How does this make sense, the $1,500 is actually a loss I incurred? Do I just enter 0? Do I need to ammend my 2021 return? There were no gains so I am not sure if this impacts the amount. Is there anywhere else I need to document this outside of the 1099-R in turbotax?
