IRA distribution for education.

[Terrigirl16]

I took an early withdraw from my traditional IRA to pay for my kids college tuition.  Turbo tax has a place for the 1099-R but in 2025 it is NOT asking my if I took the distribution for education so I'm getting hit with a penalty.  The code on the 1099 is 1 but there should be an exception rule for the college tuition exception.  It asks for Rollover information and some other things but Nothing on education expenses.

[MaxA1]

You will need to keep going through the prompt until you get to the section where it asks "Tell us which person may have qualified for a penalty exception". To go through the questions again, go to the "wage and income" section and click "review" next to the IRA section, then click continue to go through the questions again. Once you get to the "Tell us which person may have qualified..." screen, click on the pencil icon next to your name, and answer the questions accordingly.  Once you get to the part where it says "These situations may lower your tax bill" you will enter the amount you took out for qualified education expenses in the "Higher educations expenses" field.  Click continue, and that should remove your early distribution penalty. 

Here's a link with additional information regarding exceptions to the early retirement distribution penalty: Are there exceptions to the early distribution penalty on an IRA?