Since there are various limits for different types exceptions to the early withdrawal penalty, TurboTax does immediately remove the penalty on the entry page. However, if you have a number greater than $1,000 on the line for "distributions for eligible emergency expense distributions", you will get an error during the Smart Check that occurs before filing.
The number entered for this exception (line W of the worksheet) should not exceed $1,000 which is the maximum allowable amount for this type of early distribution exception.
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