1099-R withdrew only what I contributed, how do I enter that so it's not added as income?

[joned30]

Hi,

I have a 1099-R Distribution code J and a gross distribution of $9,000. I only withdrew the amount I contributed so it is not penalized or taxed; however, it is adding the 9K to my gross income thereby showing I now owe taxes. Is that correct, or should I not enter the 9K on my taxes?

Thank You

[DavidD66]

Since you received a Form 1099-R, you will have to report it or the IRS will propose an adjustment to your return if you file without it.  The IRS permits the withdrawal of same-year IRA contributions if made within six months of the due date of a return, without extensions.

If you properly told the IRA custodian that you were making a "return of contribution", then they would also return any earnings attributed to the contribution while in the IRA, and should have issued a Form-1099-R codes 1 & 8 in Box 7, indicating a return of contribution as if it never happened.

If you simply took a normal distribution, then the IRA custodian will issue a 1099-R with a code 1 in box 7, indicating an early distribution with no know exception.

[macuser_22]

---

@joned30 wrote:

Hi,

I have a 1099-R Distribution code J and a gross distribution of $9,000. I only withdrew the amount I contributed so it is not penalized or taxed; however, it is adding the 9K to my gross income thereby showing I now owe taxes. Is that correct, or should I not enter the 9K on my taxes?

Thank You

---

You can always withdraw your own Roth contributions tax and penalty free.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

One of the followup questions will ask for your prior year** contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

Note: **Prior year - any current year Roth contributions should be entered into the IRA contributions section. They will not show up in the prior years contributions but will be accounted for on the 8606 form that calculates the taxable amount.You can always withdraw your own Roth contributions tax and penalty free.