Since there is only one Form 1099-R, it appears that the Roth IRA custodian transferred you husband Roth IRA into your own before making a distribution to you of $29,645.78. The movement of the $8,000 to a new Roth IRA was treated as a nonreportable trustee-to-trustee transfer.
Because you are under age 59½, the $29,645.78 distribution is not a qualified distribution and one would expect the Form 1099-R to have code J in box 7. The taxable amount must therefore be calculated on Form 8606 Part III. Enter the Form 1099-R into TurboTax under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R) exactly as it appears. Indicate that you did not inherit this IRA. Do not indicate that any amount was moved to another retirement plan; indicate that all of it was used for something else. If you are not a qualified first-time homebuyer, do not indicate that any of this was used for a first-home purchase. Initially TurboTax will treat this distribution as entirely taxable and subject to a 10% early-distribution penalty, but that will change once the taxable amount is determined. After entering the Form 1099-R, click the Continue button on the Your 1099-R Entries page and answer the questions on the pages that follow. In particular, when TurboTax asks for your Roth IRA contributions prior to 2016, enter the combined amount contributed by both you and your husband. (The transfer of your husband's Roth IRA into your own resulted in the transfer to you of his Roth IRA contribution basis as well). Answer similarly if any of the money in the Roth IRAs was the result of any Roth conversions. TurboTax will then prepare Form 8606 to calculate the amount of the distribution that was in excess of the amount of these contributions, leaving the remainder as taxable and subject to the 10% early-distribution penalty (unless you have a penalty exception that applies).
If you
are a qualified first-time homebuyer, any amount that would otherwise be taxable, up to $10,000, you'll want to indicate to TurboTax was used for a first-home purchase. If you or your husband made a first Roth IRA contribution for some year prior to 2012, this will make this portion tax and penalty free.
