After you enter you Form 1099-R, you will be on the "Review your 1099-R info". Make sure you click on "Continue" from there. There will be a series of questions. One of those questions will be "Any Nondeductible Contributions to Your IRA". You need to answer Yes so you can enter your $10,000 of after tax contributions. On the next page you will enter $10,000. Continue through the questions. Your IRA distributions should now show only the $986 gain as taxable income.
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