Withdrawals from a traditional IRA are always taxed, because the original investments were not taxed. If you are a first time homebuyer (under the meaning of the law), you can get an exception to the 10% penalty for early withdrawal under age 59-1/2, but only on the first $10,000 of the withdrawal. (The withdrawal is always subject to income tax, and anything over $10,000 is subject to the penalty as well.)
Withdrawals from Roth IRAs may not be taxable at all (depending on the account history, we can discuss that in more detail if you want). If your withdrawal is not subject to tax, you might not be asked about penalty exceptions because the exception is not needed.
Other retirement plans are not eligible for the first time homebuyer exception, and a 401k or other workplace plan is not an IRA. They have different laws and regulations, even though they have a similar purpose. If your 1099-R does not have the right code for an IRA, then Turbotax won't offer options that only apply to IRAs. You might have a different kind of plan, or you might need a corrected 1099-R.
