Excess Contribution Loss Roth IRA 2024 (TT showing taxes due on loss amount)

[cristiemac]

Excess Contribution with Loss Roth IRA 2024 (TT showing taxes due on loss amount)

1.I over contributed in Roth IRA 2024. I withdrew the excess amount which had a loss in 2025 befor ethe filing deadline, so it was less than contributed amount. In the income section, I entered a dummy 1099-R with the amount withdrawn (contribution-loss) using J,P for year 2024 and zero taxable in 2a.

Is this the correct action for the above?

2.In the IRA contributions section, I enter the inital contribution and then the excess removed (contribution-loss) when asked. TT is showing tax due on the loss amount. 

How am I supposed to enter the above since the loss is not taxable?

TT has defaulted to Deluxe edition (I am assuming) since I have 1099-DIV, 1099-R, 1099-INT  with Standard Deduction

Thanks !!!

[DanaB27]

1. Yes, that is correct.

2. No, you need to enter the excess contribution amount withdrawn but ignore the loss. Therefore, you will enter $7,000 if you requested a return of $7,000 excess contribution but received $6,900 because of a loss.

[cristiemac]

Thanks for the clarification!

2. I will go back and enter $7,000 instead of the withdrawn amount ($7,000-loss) that will appear on the 1099-R that will assumingly arrive in 2026.