Excess IRA, and Roth IRA Contributions. with loss

[Steve195]

I put in $7000 4/10/2022 in my IRA for 2021 tax year.  My wife put in $7000 in her Roth in October 2021 for 2021.   We filed an extension due to the sale of real estate; the sale put us over the eligible income level for contributions.    We have recently withdrawn what remains of the contributions, we both lost money per the calculations of our Brokerage company.   We would expect to get a 1099R for our distributions next year.

I am using Tubo Tax Home and Business 2021, and after following the instructions it shows we still have made contribution of $3733 (the amount of the loss).   Is this correct?

[fanfare]

See here:

https://ttlc.intuit.com/community/retirement/discussion/re-how-to-report-the-removal-of-2021-excess-...

[fanfare]

If you reversed your contribution, you did not make any contribution.

Take off the deduction, if any,  for $7,000 to traditional IRA.

(you don't have to amend if you did not yet file 2021 tax return)

@Steve195 

[Steve195]

I haven't filed yet (we filed an extension), but need to by next week. 

[fanfare]

Comment above revised.

@Steve195 

[Steve195 · Accepted solution]

Turbo tax is showing the remainder of the contribution which was a loss as a contribution.    

[fanfare · Accepted solution]

" it shows we still have made contribution of $3733 (the amount of the loss).   Is this correct?"

It is not correct. Start over.

You want Zero on Line 4a, 4b, and Schedule 1 line 20.

@Steve195 

[fanfare · Accepted solution]

You want Zero on Line 4a, 4b, and Schedule 1 line 20.

@Steve195 

[dmertz · Accepted solution]

You mistakenly entered the amount distributed instead of the $7,000 returned.   The loss-adjusted amount distributed is not the amount of contribution returned.

[Steve195]

Thank you both!!!