[Re-posted to correct topic]
I made in 2022 I made a Roth IRA contribution of $7000 for myself. In 2023 while preparing my taxes, I realized that I had earned too much money to make this contribution so I requested by brokerage firm to do a return of excess for this amount. I had a partial loss of value from the time I made the contribution so the amount that needed to be returned to me was less than $7000. Let's say it was $6500. I instructed the firm to return this amount to me which they did. I then found that I was eligible for a partial contribution (still prior to the 2022 tax deadline) and made a partial contribution, say for $2000.
My 1st question is related to how to report all of this on Turbotax. I reported that I made a contribution of $7000 and another contribution of $2000. When asked if I returned any excess, I said yes. When asked the amount, I entered $7000. Should I have entered $6500, the amount that was returned to me? If I had, it would have shown that my total contribution for 2022 was $2500 when it was actually $2000.
When I received a 1099-R in 2023 showing the distribution of $6500 with codes PJ, Turbotax told me that I may need to amend my 2022 tax return which the comment:
It Looks Like You May Need to Amend Your 2022 Return
Here's why: Your 1099-R reports earnings on a contribution you made in 2022. This information needs to go on your 2022 return.
My 2nd/3rd questions: Since I had a loss and not a gain, do I still need to amend my 2022 tax return? And if I do, what do I need to change (amend) in that return?
Thank you.
