Should I enter my 18 year old Daughter (Dependent) Roth IRA contributions?

[ThomasM125]

You would report a ROTH IRA contribution on the tax return of the person who made it. It will not result in a tax deduction but you should enter it into TurboTax if a return has to be filed for the person who made the contribution. TurboTax will allow you to make sure the contributions are allowable without a penalty, based on the income and tax situation of the taxpayer. Your contribution to a ROTH IRA cannot be more than your earned income for the year of the contribution.

[dmertz · Accepted solution]

By entering your daughter's Roth IRA contribution into TurboTax while preparing your daughter's tax return, TurboTax will keep track of your daughter's basis in Roth IRA contributions.  Your daughter will need to know the amount of her basis if she ever takes a distribution from her Roth IRAs begore age 59½.  TurboTax will also compare the contribution amount to her earnings from employment to ensure that she has not made an excess contribution (or to prepare Form 5329 to assess the penalty if she has contributed more than permitted).  She might also qualify for a Retirement Savings Contributions Credit depending on her AGI and tax liability.