Question related to "What were your ROTH IRA contributions prior to 2025"

[RyanHelp]

During the 2025 tax year, I withdrew 12,500 from my Roth IRA. This was well under my total contributions since the inception of the Roth IRA that I opened in 2012. This is the first time I've withdrawn from the Roth IRA. When I got to the question of "What were your Roth IRA contributions prior to 2025" I was eager to enter 27,500 into the blank to prove the amount I withdrew was well under my total contributions, thus preventing me from paying any penalties. However, I noticed toward the end of the process that my AL State refund was way higher than usual with no other changes anywhere other than me withdrawing from my Roth IRA. I reviewed my AL state tax return and it had put 15,000 under "OTHER MISC EXPENSES" under itemized deductions. Which makes no sense. I went back through my info and changed my "What were your Roth IRA contributions prior to 2025" answer to 12,500 (rather than 27,500) and it fixed the issue. My AL State refund is now in line with years past. Can someone explain this? It seems like there is an issue with how the software is receiving info and placing it on the AL state return. It seems like it should have asked me how much of my withdrawal was made up of contributed funds, which would be all of it. 

[AmyC · Accepted solution]

We are not on the software development team so I can only guess that AL noticed the discrepancy and decided to compensate. Thankfully, you are smart and caught it. The filing for federal and state are now in good shape.

The only downside, the correct basis was not entered, and hopefully it won't cause a future data issue. Do continue keeping track in your records. Well done!