I took out an Roth IRA distribution to purchase my first home. I received a 1099-R. Do I enter this since this was a qualified distribution?

[DoninGA]

Yes, the 1099-R you received for the distribution has to be reported on your tax return.  You will be able to indicate that the distribution was for the purchase of a first home after the form is entered.

To enter, edit or delete a form 1099-R -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

[Opus 17]

Yes, you need to include it on your tax return. Even if it is not taxable, it will allow TurboTax to keep track of your IRA distributions, so that you will know if and when you begin making unqualified withdrawals.

Briefly, you can withdraw your Roth IRA contributions at any time without tax or penalty. If you withdraw earnings, that is taxable unless the withdrawal is qualified. A withdrawal of earnings is qualified if you are over age 59 1/2 and the Roth IRA has been open at least five years.  If your withdrawal is qualified, then you pay no tax and it doesn’t matter whether it was for a first time home purchase or anything else.

If the withdrawal is not qualified because you are under age 59 1/2 or the Roth IRA was open less than five years, then you’ll pay regular income tax on the earnings plus a 10% penalty for early withdrawal. If you use an unqualified withdrawal of earnings for a first time home purchase, you do not pay the 10% penalty but you still pay regular income tax.

Here, I don’t know if you used the word qualified in the correct sense — you might have just meant that you used it for a first time home purchase which qualifies for the exemption to the penalty only.  If you enter the 1099R and provide information about the amount of your lifetime contributions, TurboTax will be able to tell if this was a withdrawal of contributions or earnings, and if you owe income tax on the earnings even if you don’t owe the penalty. TurboTax will also keep track of your Roth IRA withdrawals for the future, because you need to keep track of your contributions and withdrawals until you turn age 59 1/2, so that the taxability of any other withdrawal can be determined.