Here is what I did:
Roth IRA Contributions: I entered $7,000 for total Roth IRA contributions for 2024. Under ‘Contributions Withdrawn Before the Due Date’ I entered the total withdrawals (excess contributions and earnings).
For 1099R: I entered the total withdrawals in box 1 and taxable earnings in box 2a. I selected distribution code P and J. No boxes were checked (except I have more than one value in box 7 for distribution code). Even after I selected P and J, TT stated “Based on the 1099-R Box 7 code that you entered, it looks like you may need to pay extra taxes on this distribution.” I selected 2025 for 1099R and none of these apply regarding substitute 1099R. I took your advice and I entered the earnings under ‘Corrective distributions’, now it is showing I don’t owe any extra tax but then I have to explain the return of contribution. TT stated “You told us you received a return of an IRA contribution before April 15, 2025. Explain here the details of the return of contribution.” I explained what happened and the excess and earnings were removed on September 12th. Is it okay even if it states “You told us you received a return of an IRA contribution before April 15, 2025” and I did the removal this month? If yes, I should be good to go, correct?
Thank you so much for your help.
