Where can I add the exception for the 1099R distribution?

[JamesG1 · Accepted solution]

To generate IRS form 5329 to report an exception to the 10% penalty for early distribution, follow these steps:

1. After entering the IRS form 1099-R, you should see the screen Let's see if we can lower your tax bill.
2. At the screen Identify the plan, tell the software what kind of plan the distribution was from.  Click Continue.
3. At the screen These situations may lower your tax bill, enter the dollar amount next to the appropriate exception.  Click Continue.
4. At the screen Good news:  your tax bill just got lower, the IRS form 5329 has been generated

See also this TurboTax Help.