Q. I've made ROTH withdrawals for qualified educational expenses. Is there any special procedure I need to do to tell TT the withdrawals were for education related things?
A. Yes, sort of.
You will receive a form 1099-R, from the IRA administrator, for the distribution (withdrawal). There will be nothing on the 1099-R about education expenses (having told etrade did nothing). Enter it in TurboTax (TT) at Retirement Plan and Social security income. The code in box 7 tells TT that it was an early distribution.
TT will then ask about your previous contributions and previous distributions. . If the distribution amount exceeds your contributions basis, TT will calculate the taxable amount. If any is taxable, TT will ask about penalty exceptions (including education) and prepare form 5329 (if needed) to claim the exception.
