Retirement tax questions

No, you need to enter the 1099-R as shown with code 1 in box 7.

1. After you have entered all the 1099-R info and answered some follow-up questions you get to the "Review your 1099-R info" screen (in TurboTax Desktop “Your 1099-R Entries”) where you see all your 1099-R entered listed.
2. Click "Continue"
3. You will get some follow-up questions (disaster, if you made non-deductible contributions).
4. Click "Continue" on the "Let's see if we can reduce your early withdrawal penalty"
5. On the "Did you use your IRA to pay for any of these expenses?" screen enter the $1,500 under "Another Reason"

Another way to get to the "Review your 1099-R info" screen (after you had entered all 1099-R):

1. Click on the Search box on the top and type “1099-R”
2. Click on “Jump to 1099-R”

@Saxophone47