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1099-R IRA early withdrawal - TurboTax 2025 does not provide ability to identify early withdrawal as a qualified distribution

As of January 25, 2026 TurboTax 2025 Home and Business updated version is 025.000.0230
The section for entering and evaluating Form 1099-R IRA early withdrawals does not facilitate questions / selections for qualified distributions (in my case, for qualified education expenses). 
I confirmed that the 1099-R form entry includes:

Box 2b: Taxable amount not determined box is checked 

Box 7: Distribution Code is set to 1 

I can clearly see in the Forms view under Schedule 2, Part II, Line 8 that the 10% penalty is being applied.

 

When is this section going to be updated with a SW bug fix ?

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3 Replies

1099-R IRA early withdrawal - TurboTax 2025 does not provide ability to identify early withdrawal as a qualified distribution

Click on Federal Taxes (Personal using Home & Business)

Click on Other Tax Situation

Under Additional Tax Payments

On Extra tax on early retirement withdrawals, click on the start button

1099-R IRA early withdrawal - TurboTax 2025 does not provide ability to identify early withdrawal as a qualified distribution

Thank you for your quick support note !

1099-R IRA early withdrawal - TurboTax 2025 does not provide ability to identify early withdrawal as a qualified distribution

Go to the main page of turbo tax click on Other Tax Situations.  Click on Extra tax on early retirement withdrawals; next page click continue; the next page gives you different options; on Other (including over 59. 1/2) I entered the amount I was having to to pay a penalty on and it fixed the problem.

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