@kanban224 What you are looking at on the 8606 in part 3 is a calculation performed to determine if there are any earnings in the distribution. For an example, if your distribution was $60,000, your exemption is $10,000 and your basis is $38,000. Your earnings was $12,000 and there would have been a taxable distribution for $12,000 reported on line 4B on your 1040. Turbo Tax determined there is no taxable distribution and did not populate line 20 because there was no tax consequence. This is because you indicated you met the five year holding period in the federal interview. Even if you hadn't met it, your basis would have been more than the earnings, after the $10K was applied
Your bigger issue is that you have an early withdrawal penalty on $34,000 because you are less than 59 1/2. You can verify this by looking at Schedule 2, part 2, line 8. Check that schedule where I just indicated to see if this is the case.
Also check your 1040, Line 4B, there should be no taxable amount for your IRA. Check Schedule 2 and your 1040 by:
- If using Turbo Tax online, go to tax tools>tools>view tax summary>preview my 1040, which is listed in the left pane on your return. Verify there is no amount listed in line 4B on the 1040 and there is an amount on Schedule 2, part 2 line 8.
- If you are using the software, go to forms mode and look at the 1040 as well as the Schedule 2.
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