turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Roth IRA Return of Excess Contribution -- where there was a partial loss of value

[Re-posted to correct topic]

I made in 2022 I made a Roth IRA contribution of $7000 for myself.  In 2023 while preparing my taxes, I realized that I had earned too much money to make this contribution so I requested by brokerage firm to do a return of excess for this amount. I had a partial loss of value from the time I made the contribution so the amount that needed to be returned to me was less than $7000. Let's say it was $6500.  I instructed the firm to return this amount to me which they did.  I then found that I was eligible for a partial contribution (still prior to the 2022 tax deadline) and made a partial contribution, say for $2000.

 

My 1st question is related to how to report all of this on Turbotax.  I reported that I made a contribution of $7000 and another contribution of $2000.  When asked if I returned any excess, I said yes. When asked the amount, I entered $7000.  Should I have entered $6500, the amount that was returned to me?  If I had, it would have shown that my total contribution for 2022 was $2500 when it was actually $2000.  

 

When I received a 1099-R in 2023 showing the distribution of $6500 with codes PJ, Turbotax told me that I may need to amend my 2022 tax return which the comment:

It Looks Like You May Need to Amend Your 2022 Return

Here's why: Your 1099-R reports earnings on a contribution you made in 2022.  This information needs to go on your 2022 return.


My 2nd/3rd questions: Since I had a loss and not a gain, do I still need to amend my 2022 tax return?  And if I do, what do I need to change (amend) in that return?

 

Thank you.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Best answer

Accepted Solutions
DanaB27
Expert Alumni

Roth IRA Return of Excess Contribution -- where there was a partial loss of value

No, you entered correctly $7,000 as the contribution amount returned to you.

 

No, you do not need to amend the 2022 tax return since you had no earnings reported in box 2a. Only earnings are taxable and since you had a loss you do not have anything to report on your 2022 tax return. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

DanaB27
Expert Alumni

Roth IRA Return of Excess Contribution -- where there was a partial loss of value

No, you cannot deduct the loss.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

4 Replies
DanaB27
Expert Alumni

Roth IRA Return of Excess Contribution -- where there was a partial loss of value

No, you entered correctly $7,000 as the contribution amount returned to you.

 

No, you do not need to amend the 2022 tax return since you had no earnings reported in box 2a. Only earnings are taxable and since you had a loss you do not have anything to report on your 2022 tax return. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Roth IRA Return of Excess Contribution -- where there was a partial loss of value

Thank you @DanaB27 .  I appreciate you for responding and sharing your expertise.

Would I be able to report the loss as a deduction?

DanaB27
Expert Alumni

Roth IRA Return of Excess Contribution -- where there was a partial loss of value

No, you cannot deduct the loss.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Roth IRA Return of Excess Contribution -- where there was a partial loss of value

Thank you again @DanaB27   

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies