Yes, if you had qualifying expenses for your first home then you do not have to pay the 10% early withdrawal penalty and the distribution will not be taxable if you had the Roth IRA for 5 years since it is a Qualified Distribution (up to $10,000).
Please follow these steps:
- Login to your TurboTax Account
- Click on the "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter your 1099-R
- Answer "yes" when TurboTax asks if you used the money to buy your first home and enter the amount.
- Click "continue" after all 1099-R are entered and answer all the questions.
- Continue until "Did you use your IRA to pay for any of these expenses?" screen (this screen won't come up if you only withdrew your contributions) and enter the amount under "First Home Purchase".
For your information, you can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Please make sure you are entering your net contributions to the Roth IRA when TurboTax asks.
@reggie13955
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