We had a Roth distribution of $44,000 in 2020. Basis is $30,000. Age is less than 59 1/2. Box 7 is T. On TurboTax tax return it shows no taxable income. Why?

[markncgolf]

Taxable income is  $14,000.  How to fix  TurboTax?

[npierson7]

A code T 1099-R is reporting a distribution from a Roth IRA that is not subject to early withdrawal penalty but the financial institution issuing the 1099-R does not know if the 5-year holding period to make the distribution a qualified (and therefore entirely tax free) distribution has been met.  If the 5-year holding period has been met, the distribution isn't taxable. 

[Dave65785]

i am asking for a clearer statement, I have Roth distributions $16,000, code is T. What needs to be done to show this as not taxable. I have held this for over 10 years.

Dave

[ColeenD3]

The pivotal questions in the program are:

Owned Any Roth IRA for Five Years?

Were Any Roth IRAs Open?

Withdraw from Your Roth IRA Before 2020?

Enter Prior Year Roth IRA Contributions

[dmertz]

The question asked by markncgolf refers to a distribution from an inherited Roth IRA since a distribution from a Roth IRA of which markncgolf was the participant would have code J to indicate that markncgolf was under age 59½.  For a distribution from an inherited Roth IRA the beneficiary must separately calculation the taxable amount based on the year for which the decedent first made a Roth IRA contribution that the amount of contribution basis the decedent had in Roth IRA contributions and conversions.

For a code-T distribution from a Roth IRA of which you are the participant, you must click the Continue button on the page that lists the 1099-Rs that you've entered and, when 2020 TurboTax asks, indicate that your first contribution was before 2016.