My refund has been reduced by a Roth IRA distribution but I withdrew an amount less than my total contribution. Why is my refund being reduced? Isn't this tax free?

[KittyM]

To allow TurboTax to know that you have Roth IRA contribution basis, you need to enter your Roth IRA contribution under Deductions & Credits.  Scroll down to Retirement and Investments and then choose Traditional and Roth IRA Contributions.

This will then allow TurboTax to apply this contribution basis against your Roth IRA distribution, resulting in TurboTax calculating on Form 8606 Part III that the taxable amount of your distribution is zero.