Follow the instructions below to enter the basis of your nonqualified Roth IRA distributions. This will also ensure that Line 19 of Form 8606 calculates properly.
To enter Form 1099-R (Distributions from Retirement Plans) into the program:
After you enter the distribution amount on the screen titled Retirement Plan Income - Distribution Amount, make sure the Taxable Amount Not Determined box is checked.
For the screen titled Roth IRA Distributions - Basis to appear in step 5, the correct codes need to be entered on the screen titled Retirement Plan Income - Box 7. For example, if the Box 7, Code J-Roth Early Distribution is entered, the basis screen will appear.