icst19, if you inherited the Roth IRA from your spouse and have chosen to treat it as your own, it's no longer an inherited IRA. To make it nontaxable you must click the Continue button on the Your 1099-R Entries page and answer the question asking whether at the time of the distribution it has been at least 5 year from the beginning of the year for which you or your spouse first contributed to a Roth IRA, and also enter your basis in Roth IRA contributions and conversion.
If you inherited the Roth IRA as a non-spouse beneficiary (or from a spouse and have not chosen to treat it as your own, which usually makes no sense) and indicate to TurboTax that this is an inherited IRA, TurboTax will not include it in taxable income (even though there are some cases where some or all of the distribution is taxable, resulting in under-reporting income on your tax return).
