Excess Roth contribution in 2018 withdrawn before 2019 deadline. Why does 2018 amend show me getting taxed when amount withdrawn is less than contribution due to loss?

[orbops]

I have a 2019 1099-R form, but TurboTax told me I need to amend 2018 form. Now 2018 amended form says I owe money on the loss - which doesn't sound correct to me.

[DianeC958]

The loss on your Roth IRA is not deductible but you should not owe taxes on the loss since you contributed the money to a Roth IRA.

In amending your 2018 return put in the full amount you contribute to the Roth IRA.  Then you will have a form 8606 for the amount that was overcontributed.

With the information from the 8606 form as a part of your 2019 return, it tells the program when you withdraw the money that there is no penalty due on the withdrawal.

Link for How do I report a withdrawal of an excess 2018 Roth IRA contribution

[orbops]

When I entered the 2018 contribution into TurboTax for the 1040X Amended return, it never generated an 8606 form for the 2018 1040X return and continued to state that I owed 100% taxes for the contribution loss. I searched for other answers to the problem, and one suggestion ended up working for me.

I had to remove the original Roth contribution from my 2018 return, then filled out the 2019 1099-R forms for my wife and I that showed what our withdrawal/distribution was. TurboTax then showed no taxes were due, so we completed the amended 2018 1040X form and mailed it in.

For the 2019 return, TurboTax said the 8606-T form will not be available until 2/12/2020, so we're waiting until then to finish up our 2019 return.