We did not make an early withdrawal from IRA. How can we change this designation?

Is this from a traditional IRA? If you are under 59 1/2 and take a distribution then you will have the 10% early withdrawal penalty unless you meet an Exceptions to Tax on Early Distributions. If you do then you can enter this on the "Did you use your IRA to pay for any of these expenses?" screen in the follow-up question.

 

You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Please make sure you enter your net contribution prior to 2022 in the follow-up question.

 

1. Login to your TurboTax Account 
2. Click on "Search" on the top and type “1099-R” 
3. Click on “Jump to 1099-R” and enter all your 1099-Rs
4. Click "Continue" on the "Review your 1099-R info" screen
5. Answer all the questions and make sure you enter the net contributions prior to 2022 on the "Enter Prior Year Roth IRA Contributions" screen
6. Answer the remaining question.

 

If this doesn't answer your question then please provide more details about your distribution and we will be happy to help you.