IRA withdrawal for a first time home being charged 10% penalty

[maxreco]

My wife withdrew $10k from her Roth IRA, and I withdrew $10k from my traditional IRA. TT calculated her withdrawal correctly; there was no tax or penalty. It added my $10k to my income correctly, but incorrectly charged me the 10% penalty. The program asked questions if this was used in her first home,  but it did not for me. How can I fix this so I do not get charged this penalty?

[MinhT1]

In TurboTax Online, please follow these steps:

1. After you have entered all your form 1099-R, on the summary page Review your 1099-R Info, click Continue 
2. Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
3. Enter the amount of the distribution (up to $10,000) in the box next to First home purchase (up to $10,000) and click Continue
4. Your early withdrawal penalty will be waived.

As a first time homebuyer, your early IRA distribution is exempted from the 10% penalty up to a distribution amount of $10,000.

Please read this TurboTax Help topic.

[maxreco]

Thank you MihnT1,

the process you described worked exactly for the Roth IRA withdrawal. but not the Traditional IRA. Step 2 of your answer doesn't appear for the Traditional IRA. It asks if I did something else than a rollover, but the entire page that has the selection box for home buying never appears. That's my issue. Box 7 has "1" and the simple/IRA box is checked.

[DanaB27]

Please verify that you have indicated in the interview that the Form 1099-R belongs to you.

Please note the "Did you use the money you withdrew to buy your first home?" screen only applies to Roth IRA distributions and will not come up for the Traditional IRA distributions.

Follow MinhT1 instructions and click continue on the "Here's your 1099-R info" screen after you entered all Form 1099-Rs. Continue until you see the "Did you use your IRA to pay for any of these expenses?" screen. You will be able to be exempt from the 10% early withdrawal penalty but your Traditional IRA distribution will be taxable income (unless you had a basis). 

Note, if your wife only withdrew contributions then the "Did you use your IRA to pay for any of these expenses?" screen will not come up since her distribution isn't taxable and therefore the 10% penalty won't apply.