Hi I start Graduate school on January one and want to withdraw funds from my IRA to help pay for it. The IRS allows this penalty free. Can turbotax file this tho?

[VolvoGirl]

Yes Turbo Tax can handle that.   You will get a 1099R for the distribution.   After you enter it (or maybe it's after you go through the Deductions section) it will cover exceptions to the penalty.  

[DoninGA]

The withdrawal is reported to you on a Form 1099-R.  You would receive the form in January 2022 from the IRA plan administrator for any withdrawals made in 2021.

TurboTax supports entry of a Form 1099-R and will ask if there are any exceptions to the early withdrawal penalty after the tax data from the 1099-R is entered in the program.

To enter, edit or delete a form 1099-R -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen.  Click on Jump to 1099-R