1099r used for downpayment of house; there is not a place within Turbo Tax to indicate the $10K of the distribution was used for a downpayment on house.

[thomasjsally]

Want to be sure I am entering the 1099-R correctly. 

[Anita01]

The only way a 1099-R distribution relates to a house is if it comes from an IRA and is used to purchase a first home.  In that case, up to $10,000 can be taken without the owner having to pay a 10% early distribution penalty, if they were under 70 1/2 and would have been subject to the penalty otherwise.  The full distribution amount is still taxable.

If you would have been subject to the penalty, and this was from a IRA, you would have been asked if the money was used for a first time home purchase.