Get your taxes done using TurboTax

You do not have to get your 1099-R corrected. You can indicate in TurboTax that your distribution was for permanent disability and the early withdrawal penalty will be waived.

After you have entered your form 1099-R, on the summary page, click Continue and follow the TurboTax interview until you arrive to a page titled Did you use your IRA to pay for any of these expenses?. You can enter the amount of the distribution in the box Permanent disability (see screenshot).