how to wave early IRA distribution penalty for education expenses? (using TurboTax 2025)

[user17736143383]

How do I enter higher education expenses as an exception to the IRA early withdrawal penalty.  After entering my 1099-R (IRA box is checked), it asks the following questions:

Do any of these situations apply to you?

- I took out this money due to a qualified disaster

- I inherited this IRA

-This is for a SIMPLE IRA within the first two years of participation only

-This is for a SIMPLE IRA with more than two years of participation

-This is for a SEP IRA

-I moved some or all of this money to my HSA as a one time contribution

-I need to file a substitute 1099-R

-The corrected box is checked on this 1099-R

-None of these apply

It doesn't offer higher education expenses as part of the interview.  The next screen only asks about rollovers/conversions, then the section is complete.  Help!

[MaryK4]

You have to continue in the interview until you see the "Let's see if we can lower your tax bill screen." 

• The next screen will say Tell us which person may have qualified for a penalty exception- you can click the pencil by your name.  
• Next you will see Identify the Plan
• Finally, you will see "These situations may lower your tax bill" where you can enter the amount for Higher Education Expenses.

TurboTax will create the 5329 to file with your tax return and waive the 10% penalty.  

To qualify for the early IRA distribution penalty waiver for higher education, you must meet specific requirements regarding the student, the institution, and the types of expenses paid in 2025.  See Exceptions to tax on early distributions.
 

[user17736143383]

thank you!