Since you've met the 5-year holding period, for these to be qualified distributions you would have to be over age 59½ (you are not), disabled (I assume that you are not), dead (you are not), or you meet the requirements to be a first-time homebuyer.
TurboTax's help often oversimplifies the tax code to the point of being misleading or erroneous. Not having used up the $10,000 lifetime limit on the exception (not a credit) previously is only one of the requirements. For the purpose of an early distribution from an IRA, to be a first-time homebuyer you (and, if married at the time of the purchase, your spouse) must not have had any ownership interest in a home at any time during the 2-year period ending on the date of the acquisition of the new home, you must use the distribution for the first-home purchase within 120 days following the day of the distribution, and you cannot exceed the $10,000 individual lifetime limit on using the first-time homebuyer exception. If you were a part owner of a home within the 2-year period ending on the date of acquisition of the new home, you don't qualify for the exception.
