Are Roth IRA contributions taxed directly when filing taxes?OR (as I thought) your paycheck is taxed there for there shouldn't be any further tax to contribute to a ROTH?

[DoninGA · Accepted solution]

Roth IRA contributions are used with after tax dollars.  Roth IRA contributions are not deductible on a federal tax return.  If your contributions are reported on your W-2 in box 12, you do not enter your contributions again in the TurboTax program.

To enter an IRA contribution -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits 
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement and Investments
• On Traditional and Roth IRA Contributions, click the start or update button

Or enter ira contributions in the Search box located in the upper right of the program screen.  Click on Jump to ira contributions

[daonesock]

Thanks for this information. So if I make contributions to ROTH outside of W-2 they get taxed desperately. Took a big hit when i entered that amount in, thats a bummer. OK, thanks again!