Below, please find the procedure for entering the basis of your nonqualified Roth IRA distributions. To get Line 19 of Form 8606 to calculate properly, follow the instructions below:
To enter Form 1099-R (Distributions from Retirement Plans) into the program:
After you enter the distribution amount, make sure the Taxable Amount Not Determined box is checked. Also, the correct codes need to be entered for the screen titled Roth IRA Distributions - Basis to appear. For example, if the Box 7, Code J-Roth Early Distribution is entered, the screen will appear.
Line 15b should now have the correct amount as taxable.