In 2025, I created a new Roth IRA with an initial contribution of $16,000. I realized my error within two days and requested my broker return the $8,000 excess contribution.
I received a 1099-R from my broker for that transaction. The Distribution Code (Box 7) is "T" indicating excess contribution return. However, TurboTax Desktop shows my tax owed increased after adding that form.
I don't see any options to further explain that the $8,000 shouldn't be taxable since it was the excess contribution return. How do I update my entries in TurboTax Desktop to ensure that amount is not taxable?
