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 (checkbox is located on the screen titled Retirement Plan Income - Distribution Amount). 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 4b should now have the correct amount as taxable.