How do I put into the basic tax program an inherited Roth that was not held 5 years. I believe it is taxable but the program with the new update today states it is not taxable. which is it and how do I file it.
Interesting. You are right, it seems like the program is doing it wrong now. It SHOULD be treating the Roth distribution as taxable to the extent the distribution is in excess of Basis.
Maybe @Orlando could report this error to the proper person.
But that leads me to the second point, you NEED to know the Basis. The entire amount is not taxable; the distribution is only taxable to the extent it is larger than the Basis.
Orlando, in case whoever is working on this needs to know, there are MORE problems with IRAs.
A Traditional IRA shows up as completely non-taxable if you add ANY Basis (even $1 Basis will make the entire distribution non-taxable). I confirmed that.
Another user said a Traditional IRA is showing up as non-taxable with NO Basis. However, I was not able to replicate that one.