In the year you make an IRA contribution, your income is decreased by the tax deductible portion of the contribution as an adjustment to income on your form1040. You can see this reflected on 1040 Schedule 1, line 19. Therefore, when you take a distribution from your IRA the total amount is taxable income. Now if you were not able to deduct all the contributions you made to your IRA due to income limitations, that portion would be considered a non-deductible contribution. The amount of the non-taxable contribution would not be taxable income, TurboTax asks the questions if you made any non-deductible contributions to your IRAs. Additionally, a Roth IRA you contribute after tax dollars. The amount of your original contribution would not be taxable upon distribution.
