I received a lump sum from my retirement that was offered from the company I worked for. I put $8000.00 into an Roth IRA why does this show as income? Thank you!

ROTH IRAs are funded with after tax dollars. Rolling your distribution from an account funded with pre-tax dollars (assuming yours was) over into an after-tax account triggers a re-characterization of the distribution as taxable income.

But, I thought if you contribute to an IRA that amount wouldn't show as income and be taxed. Thanks

Rolling the funds over to a traditional IRA preserves the tax advantaged status. ROTHs do not. The tradeoff is that all of your earnings from the ROTH will be tax free in retirement assuming you hold the account for 5 years before you begin withdrawing earnings.

It's a question of paying now or paying later. By going with the ROTH option, you opted to pay now.

oh ok thanks so much for the help!