I am trying to do taxes on turbo tax deluxe. We pulled the 401 k as a down payment on our first home. When we pulled the money the bank told us there is no penalty when it comes time for our taxes because we are using it as a down payment on our first home. The 1099R we received shows code 1 In box 7 which is early withdraw. Is there a way on turbo tax to counter act the code 1 because we used it as a down payment? with only the code 1 in there it is charging me additional tax that I was told I shouldn't have to pay.
