Question ask if we receive any distributions from a retirement plan after 2014. We reported last tax return that he took it out in 2016. Why is it asking this again?

[dmertz]

TurboTax asks for this information in the Retirement Savings Contributions Credit section of the interview because distributions made in 2015, 2016, 2017 or in 2018 through the due date of your tax return reduce dollar for dollar the amount of each spouse's 2017 retirement contributions considered for the credit.  If your distribution in 2016 was greater than or equal to your new retirement contributions for 2017, neither you nor your spouse will be eligible for any of this credit in 2017.

TurboTax asks for this separately because the history of your retirement distributions does not propagate from year to year in TurboTax.

[murphy1315]

So, see if I understand this correctly: Even though I reported the 401K distribution that I received in 2015, on my 2015 tax return (and paid both the tax, and 10% early distribution penalty on that 2015 return), I still have to report the distribution on my 2017 return also/again?

[dmertz]

Yes.  Entering it into 2017 TurboTax return is not for the purpose of assessing income taxes but for the purpose of reducing the amount of your 2017 retirement contributions that are considered for the Retirement Savings Contributions Credit.  TurboTax has no mechanism for carrying forward any information about your retirement distributions, so you must enter them as requested by TurboTax.