Hey thanks for your help so far.
I did some testing with how I'm checking boxes, I initially missed the option to write down how much I contributed, so that lowered my taxable income appropriately. The $10,000 in earnings is added to my taxable income. When I check the box to say that this was for purchasing a home, the tax estimate does decrease by $1000, but I'm wondering if it should be more.
Prior to putting in my 1099, my tax estimate is $150. After putting in my 1099, it jumps to $8500. I set my contributions and it goes down to $3200, and then I say the remaining $10,000 is for a first home purchase, and it goes down to $2200. If I check the turbotax summary, I can do the math that shows that $10,000 from my roth ira withdrawal is still being added to my total taxable income, but shouldn't the entirety be excluded? I thought my tax estimate would go back to what it was prior to adding my 1099.
