I used my Roth-IRA to pay for graduate school. It is supposed to be tax exempt. How can I do this on turbo tax. Im not given an option for some reason. Thank you

[chancelorm]

I used roughly 27K to pay for college. I had this Roth for about 8 years.

[DanaB27]

Please follow thee steps to enter your 1099-R:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”  and enter your 1099-R
4. Click "continue" after all 1099-R are entered and answer all the questions.
5. Continue until "Did you use your IRA to pay for any of these expenses?" screen (this screen won't come up if you only withdrew your contributions) and enter the amount of higher education expenses.

You should be exempt from the 10% tax on early withdrawals if all of the distribution was spend on higher education.

 Please be aware a distribution that is not a qualified distribution will be partially included in gross income if there are earnings in the account.

[dmertz]

Before indicating that an early-distribution penalty exception applies to any amount of the Roth IRA distribution, you must click the Continue button on the Your 1099-R Entries page and proceed to where you can enter your basis in Roth IRA contributions and conversions.  Only if any amount remains taxable after that would you need to apply the education-expense penalty exception to the taxable portion consisting of earnings (or on distributions of funds attributable to taxable Roth conversions if the 5-year conversion holding period has not been met).

The 5-year holding period for qualified Roth IRA distributions is irrelevant if you have not yet reached age 59½, since you are required to have met both of these requirements for all distributions from your Roth IRA to be tax free.

[chancelorm]

I love your answer but I have went through the steps several times and I never get to a screen that remotely resembles your screenshot. 

[chancelorm]

@DanaB27 I love your answer but I have went through the steps several times and I never get to a screen that remotely resembles your screenshot. 

Some of the pages include

"Tell us if any of these uncommon situations apply

"Did you rollover all of this $27,266.94 (Box 1) to another retirement account?"

"Did you use the money you withdrew to buy your first home?"

Im given no other prompt for your screenshot. 

[DaveF1006]

it depends. What is the distribution code in Box 7? it should be a J if it is an early distribution from a Roth IRA. Make sure you indicate also that the IRA/SEP/SIMPLE box is checked in your Turbo Tax program. This is located between boxes 7 & 8 in the 1099R entry in your return. Also check your hard copy 1099R has a check mark. 

[chancelorm]

@DaveF1006 I do have J in section 7. I dont have IRA/SEP/SIMPLE checked on my form. 

[DaveF1006]

Now check the box in your program and then go through the questions again to see if that screen appears that DanaB27 references.

[chancelorm]

@DaveF1006 I went ahead and clicked the box and it still didn't help me get to the right page. I did go through and do It a few times to see If I somehow missed a step.

@DanaB27 had said "Continue until "Did you use your IRA to pay for any of these expenses?" screen (this screen won't come up if you only withdrew your contributions) and enter the amount of higher education expenses."

I did withdraw my contributions but was told that this was the only acceptable money I could use for my college expenses.

[DaveF1006]

At this point, I would suggest to delete your 1099-R and then reenter and clicking on the the IRA/SEP/SIMPLE box and code J in Box 12. If this doesn't fix the issue, contact Turbo Tax Tech support at 1-800-446-8848. They have the ability to look at your screen and pinpoint any issues you might have as I don't have that ability to troubleshoot.