In order to be sure that you are taxed only on the earnings
in the Roth IRA and not the original contribution, you must enter the basis for
the account. Use the information below
to do so:
- On the top row of the TurboTax
online screen, click on Search (or for CD/downloaded TurboTax
locate the search box in the upper right corner)
- This opens a box where you can type
in “Roth IRA” (be sure to enter exactly as shown here) and click
the magnifying glass (or for CD/downloaded TurboTax, click Find)
- The search results will give you
an option to “Jump to Roth IRA”
- Click on the blue “Jump
to Roth IRA” link
This will bring you to a
screen with check boxes to indicate what types of account you had in 2017. Be sure that Roth IRA is checked. Click Continue.
If Traditional IRA is
checked or if you have a spouse that had either type of account, the next
questions will not pertain to your Roth IRA.
Continue through this section until you are asked whether you made any contributions
to your Roth IRA for 2017. This is the
beginning of the section where you will enter details about your Roth IRA,
including the basis.
Continue answering the
questions according to your situation.
On the screen where you see Let Us Track Your Roth IRA Basis,
click Yes.
Then, on the screen titled Enter
Prior Year Roth IRA Contributions, this is asking for your total
contributions for years prior to 2017 (basis).
If your basis exceeds your distribution, then the distribution will not
be taxable. If the distribution exceeds
your basis, then the excess will be taxable.
Finish the rest of the
follow-up questions about your Roth IRA.
