Please follow these steps to enter your 1099-R to get the COVID related questions:
If this does not work then please let me know what code you have in box 7. What is in box 1 and box 2a?
Please enter the correct code in box 7 as shown on your Form 1099-R.
What error are you getting if you use code 1 in box 7? I couldn't recreate an error using code 1 in box 7.
When I changed box 7 back to 1 it automatically changes the fed tax due from $630. To $1546. So I don't think it will let me drop the ten percent penalty under code 1 box 7. I am on turbotax deluxe.
Here is some information from TurboTax about this situation.