I have read that, if you use an early withdrawal from your retirement account to purchase your first home, you can receive an exemption on the additional taxes you would have to pay. I put the 1099-R information into TurboTax, and I saw no way to indicate that I used that money for a down payment. When TurboTax asked questions looking for an exemption, it didn't ask whether I used the money for a down payment. I thought it was supposed to do that. I could use help so that I don't pay more taxes than is necessary.
