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mtb22
Returning Member

Why is Roth IRA distribution shown as taxable on 8915-E?

I'm reviewing my form 8915-E for a Roth distribution I took last year as part of the Covid qualified disaster distribution to figure out what I will need to pay taxes on for 2021.  I noticed that Part III of the 8915-E form does not differentiate between Traditional or Roth IRAs.  That being said, I took a Roth distribution which I understand would not be subject to taxes since taxes have been paid upfront.  However, after following the worksheet direction, line 19 on the worksheet shows that this Roth distribution is taxable and reports it on line 4b of Form 1040 which increases my tax liability for 2021.  I used Turbotax SE online software to prepare my taxes for 2020.  Did anybody else have this issue? And if so, how did you resolve this?  Or did I miss something obvious?

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2 Replies

Why is Roth IRA distribution shown as taxable on 8915-E?

 

In certain cases some or all of  Roth distribution may be taxable.

 

If it's on your form then it was taxable and you elected to divide by 3.0.

 

mtb22
Returning Member

Why is Roth IRA distribution shown as taxable on 8915-E?

Thanks for responding.  I figured out the problem. Turbo tax did not ask for my roth basis which assumed that my basis was 0 for this account. 

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