I am doing my 1099-R and I was told that since my early withdraw was for my son's college that I would not be penalized for this. Is this correct?

[Ashby]

Yes, you can use the cost of the tuition.  For the purposes of the 10% additional penalty exception, higher education means costs of tuition, fees, books, supplies and equipment to a post secondary school (college, university, vocational schools) eligible to participate in a student aid program administered by the U.S. Department of Education.  It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) post secondary institutions. 

Once you enter the 1099-R, the program will ask you about exceptions to the 10% penalty.

Remember, the distribution is still likely taxable, but there will be no 10% penalty.