Hello,
In 2021 I withdrew about $9,400 from a Roth IRA to make a down payment on my first home. My understanding was that this amount would not be taxed. However, in working through TurboTax, I see that I am now owing taxes of about $550 because of this. The software said that it reduced my taxes on this because all of the money was used for my home purchase, but there are still taxes owed.
I was also confused by some questions that the program asked, like my total pre-2021 Roth IRA contributions. I answered this question as best as I could, but I did not have records going all the way back to when I opened the Roth IRA account.
The software also says some of the IRA distribution was taxable, and some was not.
I am willing to pay tax on this withdrawal, if necessary, but I was under the impression that I could simply withdraw the money as if it were from a savings account because of the first time home purchase.
Thank you,
Kevin
