Since 2017, I've contributed to my Roth IRA. This year, I withdrew the full amount of my contributions, leaving just the earnings in my IRA. I received a 1099-R from the company handling my IRA with a code "J". When I enter my withdrawal into TurboTax, it is trying to tax me for my distribution and claims I owe money for it.
Since I only withdrew what I contributed, I should not be taxed from this distribution. How do make TurboTax see that I just withdrew my contributions. The example on the "Enter Prior Year Roth IRA Contributions" tells me to subtract any contributions that are left in my IRA (which would be 0 now), but if I put 0 in it, it claims I should be taxed on that amount I withdrew.
How do I enter this form so that I don't get taxed on withdrawing my contributions? There doesn't seem to be a spot for that.
When the program is asking you to enter information for Prior Year Roth Contributions you want to put in the amount you contributed so the program recognizes that you are only withdrawing the contributions.
Please review that section and put in the amount of your contributions.
I'm still confused.
So my situation is that prior to 2019, I contributed ~3200 to my roth. In early 2019, I contributed an additional 1200. Mid 2019, I withdrew 4400 due to some expenses.
That page you are talking about only allows me to enter contributions prior to 2019. The company holding my IRA has not filed a 5498 yet, but I do not plan on making more contributions right now.
The example in the help text: "Example:
You contributed $3,000 to your Roth IRA in 2016, 2017 and 2018. On June 1, 2018, you withdrew $2,500 from your Roth IRA. Subtract this amount ($2,500) from the total contributions you made ($9,000) and enter the remaining $6,500 under regular contributions to a Roth IRA."
According to this, I would have to enter 0 in the box since there are no contributions remaining.
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.
This question was previously answered by macuser_22