Reporting an Excess Roth IRA Contribution Removal

[mam62tt]

I made a $7,000 contribution to my Roth IRA account in November 2021 and found out while doing my 2021 taxes in TurboTax that I made an excess contribution.  The excess contribution was due to the fact I have no earned income only retirement pension income.  I have since processed a removal of the excess contribution from my Roth IRA and was told I would receive a 1099 next year in 2023. The removal amount of the excess contribution was $5,513.94 due to the Roth IRA account having a loss.   I have read many conflicting suggestions on how to file my 2021 and 2022 taxes to report the excess contribution correctly.  Can someone please provide clarity on how to file my 2021 and 2022 taxes in TurboTax with regards to the Roth IRA excess contribution removal?  I am not sure if I report the contribution at all for 2021 taxes.  Should I answer YES to the question about making an IRA contribution?

Thanks

[DaveF1006]

Here is how to report your 2021 removal of an excess contribution.

1. Open (continue) return if you don't already have it open.
2. Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
3. Answer Yes on the Your 1099-R screen,
4. Click on the box that you are creating a substitute 1099-R
5. Then select Continue.
6. in order to create a substitute 1099-R, you will need to obtain and name, address, and payer TIN as required so you can record the information properly on the form. You may need to contact the trustee for this information or perhaps you can get information from their website.. 

The codes you will need for box 7 are J and P. Since this is a Roth IRA the only amount that is taxable are any earnings on the excess contribution. You will receive a 1099-R for the withdrawal in 2022 you do not need to report the information since you have reported it on your 2021 tax return.

Yes, answer yes to the question about making an IRA contribution.