In order to report on
the tax return that your Roth distribution was from your contributions, you
must enter the basis of the account.
Follow these steps to get to the screen needed to report the
basis:
- On the top row of the
TurboTax online screen, click on Search (or for CD/downloaded
TurboTax locate the search box in the upper right corner)
- This opens a box where you
can type in “Roth ira” (be sure to enter exactly as shown here) and
click the magnifying glass (or for CD/downloaded TurboTax, click Find)
- The search results will
give you an option to “Jump to Roth ira”
- Click on the blue “Jump to Roth
ira” link
This will bring you to a screen with check boxes to indicate what
types of account you had in 2016. 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 2016. 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 2015 (basis).
If your basis exceeds your distribution, then the distribution will not
be taxable.
Finish the rest of the follow-up questions about your Roth
IRA.
See the picture below for a visual reference of the screen where
the basis is entered.
