Hello: I received 2 1099-R forms from Vanguard this year (2026) for tax year 2025, for having done a recharacterization of IRA Roth Contributions in March 2025 for tax year 2024 contributions. One is for the amount I recharacterized in 2025 for $4227 (for tax year 2024), which has no tax owed (line 2a). The second IRA I received in 2026 is for a "gross distribution" that may have been generated trying to sell my Roth earnings and buy Rollover IRA earnings last March 2025, and $368.09 is my distribution. I owe $19.83 in taxes. (line 2a). Last year for tax year 2024, I also correctly filed a form 8606 listing this amount and I wrote a statement filed with my tax year 2024 federal taxes saying: Date of the Recharacterization: February 11 and March 3, 2025. The Amount Recharacterized: $4227.21 The Amount Transferred (Recharacterization plus earnings or losses): $4227.21" I said I had to fix an "excess contribution" to my allowable Roth IRA contribution for those 50 years of age and older for fiscal year 2024.
QUESTION: TurboTax allowed me to enter my 1099 forms but I think it believes I was in error, or I just am not smart and not able to grasp tax rules for completing TurboTax Online for this situation. It's telling me to "Explain the return of contribution" in a box after I finish entering my 1099-R data. What information is this supposed to be? I added this, but it’s not clear this is correct: “I wrote in my return for 2024 tax year about my recharacterization: Date of the Original Contribution: June 26, 2024. Date of the Recharacterization: February 11 and March 3, 2025. The Amount Recharacterized: $4227.21 The Amount Transferred (Recharacterization plus earnings or losses): $4227.21.”
