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New Member
posted Apr 16, 2023 2:02:51 PM

If I got a 1099-R, J in Box 7 (J=Code "Early Distr of Roth IRA") why does it say I have to pay more taxes on it? I already paid the taxes when I put it in, right?

I had a large "Federal Due" and after entering my 1099-R it wiped almost all of that out. Why do I have to pay taxes again if I already paid it when I put the money away, that's the "Roth" part, right?  Also, I took it out because I was unemployed and needed it to live off of.

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2 Replies
New Member
Apr 16, 2023 2:28:57 PM

I meant to say I had a large "Federal Owed" amount, not "Federal Due"... I had a big return coming and that was all wiped out and now I owe.

Expert Alumni
Apr 17, 2023 8:26:48 AM

Yes, you can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Please make sure you enter your prior year's net contributions (and any conversions if applicable) in the follow-up question:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top and type “1099-R” 
  3. Click on “Jump to 1099-R” and enter all your 1099-Rs
  4. Click "Continue" on the "Review your 1099-R info" screen
  5. Answer all the questions and make sure you enter the net contributions prior to 2022 on the "Enter Prior Year Roth IRA Contributions" screen
  6. Answer the remaining question.

You can verify your entry by looking at Form 1040 line 4:

 

  1. Click on "Tax Tools" in the left menu
  2. Click "Tools"
  3. Click "View Tax Summary" in the Tool Center window
  4. Click on "Preview my 1040" on the left

 

If you removed earnings then will these show up on line 4b as taxable.