There is no need to apply the first-home exception since you can always make a distribution of your original contributions tax and penalty free.
In step-by-step mode, TurboTax asks about your Roth IRA distribution before asking about your Roth IRA contribution, so it temporarily calculates tax and penalty until you complete the rest of your tax return.
If your contribution in March 2016 was for the 2015 tax year, be sure to click the Continue button on the Your 1099-R Entries page and enter the $2,000 as the amount of your contributions made for years prior to 2016.
If your contribution in March 2016 was for the 2016 tax year, once you enter your $2,000 Roth IRA contribution later under Deductions & Credits, the tax and penalty for the Roth IRA distribution will disappear as a result of a $0 taxable amount being calculated on Part III of Form 8606.
