Question

Why am I getting taxed on distribution of Roth IRA

Forum|Forum|5 years ago
June 18, 2020
1 reply
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I have received 1099R this year for removing excess of $3334 on 2018 roth ira contribution. While I was doing 2018 amended tax return for New Jersey, I have noticed my income for 2018 went up by $3334 and I am being taxed for the distribution of $3334 instead of $144 of earning. Is this correct? This was not the case with the federal return

fanfare

Employee

"Is this correct? "

No, it's not.

Since you'll be filing on paper anyway, just do an override.

fanfare

Employee

you didn't say if you are Online or Desktop.

You didn't say what your 1099-R codes are.

P

Presterjohn1118Author

I am filing with the software. 1099R code is PJ. 1. Gross distribution: $3334 and 2a Taxable amount: $144.21. So my taxable income should be $144.21, not $3334 for New Jersey? I thought maybe NJ had different Roth IRA law compare to the Federal law.