Why didn't the first-time homebuyer exception take away my tax liability?

[katebethel]

It went away when answering the first-time home buyer questions but went back up some when answering the Roth questions

[JotikaT2]

Can you clarify what first-time homebuyer exception you are referring to?

There is a proposed bill that if passed, would provide a mortgage relief credit for first time home buyers.  However, it has not passed yet and therefore, does not affect your 2023 income tax return.

The last time a first-time homebuyer credit was in effect was for purchases that occurred from 2008-2010.  Please see this link for additional information.

[VolvoGirl]

Did you take a IRA distribution early to buy a house?  That is just an exception to the 10% Early Withdrawal Penalty.  You still owe the tax on it.  

For the ROTH.  Did you make a contribution?  You may have contributed over the max allowed.  Or did you convert a IRA to a ROTH IRA?  That is taxable.  

[susitnavalley]

In order to receive the exception to the early withdrawal penalty, your 1099R has to be coded with a J in box 7.  Then, there are a series of questions that arise about the ROTH distribution (Code J indicates that there was an early distribution from a ROTH IRA).   When you get thru those remaining questions, the 10K will be nontaxable on the 1040.