You have to enter the Form 1099-R into the program making sure that you have checked the IRA/SEP/SIMPLE box.
After completing entry of the Form 1099-R you will go through a series of screens with questions to answer. The interview will eventually present you with a screen titled Did you use your IRA to pay for any of these expenses?
On that screen is the first time home purchase for the 10% early withdrawal penalty exception. Enter the amount used to pay for the purchase in the box First home purchase (up to $10,000)
To enter a form 1099-R
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
