Over the years I have contributed a total of $8,000 and withdrew exactly $8,000 last year and leaving the gains in the account. I received a form 1099-R with the code ‘J’ which upon further research seems to be the correct form. I know the contributions are tax free as well as penalty free and only the gains are taxed and penalized if withdrawn which is not the case here. I am trying to input the form and cannot figure out how to put in the $8,000 as my basis so I don’t get taxed on it. The closest thing is on the part of TurboTax where it asks me to “enter prior year contributions” but when clicking on the help tool it asks me to enter what is left of my contributions which should be zero since I withdrew all of my contributions. That makes the software tax me on the $8,000 and I end up owing an awful lot. On the same page there is a box that tells me to enter “Roth IRA contributions prior to 2024” which would essentially mean I input the $8,000 which then does not tax the amount at all and that’s the outcome I want.
It’s confusing though because the help tool asks for the amount of contribution remaining and the box asks me to enter the amount of contributions over the years prior. I have been told I need to declare the amount in form 8606 but since turbotax doesn’t have that form accessible right now, how should I go about this?
