TurboTax treats as an early retirement distribution only those distributions reported on a Form 1099-R that you have entered that has code 1 or code J included in box 7. If you have entered one of these forms, you can claim a code-12 exception to the early-distribution penalty on line 2 of Form 5329 by, when TurboTax asks if you "used your IRA to pay for any of these expenses," indicating the amount that is an "Incorrect Early Distribution." If the Form 1099-R also includes code 8 or P in box 7, instead indicate that the amount is a "Corrective distribution made before the due date of the tax return."
If the forms that you have entered do not have code 1 or code J in box 7, you are not being assessed an early-distribution penalty.
If you received a Form 1099-R with code 1 in box 7 or a Form 1099-R that has code J in box 7 but does not also have code 8 or code P in box 7, contact the payer to make sure that they have your correct birthdate.
