I have received a 1099 and took a full distribution on my roth ira. I have tracked my cost basis over the years on form 8606. I took a 27k non qualified distribution. My basis is 25500.00. Basic knowledge would tell me that I will pay the penalty/tax on the amount over the basis; however, turbo tax keeps calculating the full distribution as taxable. I did go through the screens and enter the cost basis, but it is still trying to tax me on the entire 27k as opposed to 1500.00 (amount over cost basis/contributions). I also rolled over a roth 401k into a roth ira. I have my contributions for this as well. My other question is, can I add this to my basis as well? At that very least, will someone please tell me how to find the correct area so that the software will realize that my roth distribution is not fully taxable? You think it would subtract my basis from the distribution and tax me on the amount above the basis. Sounds simple, but this software is making it difficult.
