If took a distribution from my IRA to buy my 1st home & paid Fed taxes which 1099-R shows why is the whole amt being considered income? Turbo hasnt asked about home buy.

[hate2owe]

Why hasnt Turbo 'asked additional questions about the distributions'?

[VolvoGirl]

Keep going to the end of the 1099R section to ask about exceptions to the penalty.  Or it might not ask you for it until you are done with the Deduction section.

You didn't actually pay the tax or 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½).  You had taxes withheld like from your paycheck. You still have to enter the whole gross original amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The gross amount shows up,on 1040 line 4a/4c and the taxable amount on 4b/4d.  The withholding will show up on 1040 line 17.