I withdrew contributions from my Roth IRA & it's being taxed 25% . Box 1's information is $8,000. Box 2A is empty & Box 2B is checked. Box 7's code is J. How can I fix?

Forum|Forum|2 years ago
April 15, 2024
1 reply
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The contributions had been in my Roth IRA for longer than 10 years.
A withdrawal of contributions from a Roth IRA is not supposed to be taxed. After confirming the information from my financial institution was correct in Turbotax, then answering the following questions, I was sent to the next part of my taxes, with my amount owed to the federal government being substantially more than it was before entering the IRA withdrawal information. Turbotax is taxing me 25% of my withdrawal & shouldn't be. Please advise on how to proceed to get this corrected.

TurboTax Deluxe Online

Best answer by dmertz

Click the Continue button on the page that lists the Form 1099-R that you have entered and, when asked, enter your basis in Roth IRA contributions and, if any, Roth conversions. TurboTax will prepare Form 8606 to calculate the taxable amount of your distribution and, if your basis in Roth IRA contributions is more than $8,000, the taxable amount will be $0. With $0 being taxable, the $8,000 will be included on From 1040 line 4a but will be entirely excluded from the taxable amount on line 4b.