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Delete the Form 5695   Click on Tax Tools on the left side of the online program screen Click on Tools Click on Delete a form   Note - There may be multiple pages of your tax return forms and schedules so click on the page number or right arrow (>) shown at the bottom of the federal tax return forms.

DianeW777, Thank you for the detailed and quick response. I also appreciate your comments on how the IRS will view it.  I don't know how they can possibly keep up with all the minutia of our tax system. I decided to go with reporting as miscellaneous income so that I could include additional details about the source. Best regards.

Your information has to be entered from scratch.     You will not be able to merge two previous TT account to start your new joint return.  You can transfer ONE of your 2024 returns into a new return, so choose the most complicated one.  The other spouse’s information needs to be entered manually.  The first name you enter will be the “primary” taxpayer——and in subsequent years you need to keep the names in that order—do not try to change the order of the names.     When you enter the primary spouse’s information in My Info, you have to answer the question "Were you married?"  If you click the button for Married, then a drop down will appear that asks, "Do you want to file this return together with your spouse?"  Then you choose YES to file a joint return.  You enter your spouse's information into My Info.  Whenever you are entering income information there should then be a spot for you and for your spouse's income information.  WATCH for the names as you enter income on the screens.  Or when you click to add income it will prompt you to choose which spouse had the income.   When you prepare a joint return you include all the information for both spouses on the SAME tax return.  Include all of your personal information, all of your income from every source, all dependents (if any), all credits and deductions for both of you.  You get ONE refund with both names on it.   And…keep a record of how to access the “old” account for your spouse in case a need comes up to print it or find information from it.  TT will save it online for seven years,    

The piece that is missing in order to determine whether the distribution should be taxable is the basis in the Roth IRA.  If you do not see a question about the basis in the Roth IRA as you enter the Form 1099-R for the distribution, then use the instructions below to be sure to enter that information into your tax return.   Go to Deductions and Credits > Retirement and Investments > Traditional and Roth IRA Contributions.   This will bring you to a screen with checkboxes to indicate what types of accounts you had in 2025.  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 2025.  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 2025 (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.

If you are using online TurboTax you do not have forms mode.   With online you can only preview Form 1040 or Schedules 1, 2, or 3 until you pay your fees.  Only desktop download software has forms mode that allows you direct access to forms. PREVIEW 1040 https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-return-filing/L77WCkvnu_US_en_US?uid=m681fkhr  

"Don't know who has been recommending that this income be entered on the New York state tax return, but they are incorrect. It is not entered anywhere on the New York state income tax return for tax year 2025.   The New York State "Inflation Relief" check, mailed in late 2025, is generally not entered as taxable income on a New York State tax return. The state considers this check a relief payment or a return of previously paid sales tax, making it non-taxable for New York State and local income tax purposes."   It is not being manually entered as income on the NY State tax return ... it is being entered as a subtraction on the NY form since it must be entered as income on the Federal return, which then carries through to the NY State form automatically; This is the way the TT 2025 software handles this, and this is the heart of the problem. You will want to research the previous posts and recommendations given by the "employee experts" on this topic to get the background on the issue.