Form 1099-R I received a one-time distribution from y diseased Mothers IRA. How do I answer "Do any of these situations apply to you?

[dmertz]

Distributions from an inherited IRA (code 4 in box 7 of the Form 1099-R) are not subject to penalty, so no need to claim a penalty exception for this distribution.

[hrhazzard]

Thanks for that but they already took out taxes.  My understanding is that if this isn't a Roth IRA then it is taxable.  Is that correct?

[dmertz]

Yes, the distribution would be subject to income taxes.  If your mother had basis in nondeductible traditional IRA contributions, some portion would be nontaxable, that you must calculate outside of TurboTax on a Form 8606 separate from any Form 8606 related to your own IRAs.  To determine if your mother had basis in nondeductible traditional IRA contributions you would need to examine her past tax returns for any Forms 8606 that reported such contributions.

In response to the question that asks if any of these situations apply to you, be sure to mark the box to indicate "I inherited this IRA."

Whatever amount was withheld for taxes will be credited toward the overall tax liability determined on your tax return.