Is there a reason the exception "Homebuyers" 72(t)(2)(F) is not included in TurboTax exceptions?

[valentina]

In addition (Form 5329)—Extra tax on early withdrawals is not coming up on the search.

[AnnetteB6]

The first-time homebuyer's exception to the early distribution penalty based on 72(t)(2)(F) is included in the exceptions when your early distribution comes from an IRA.  It is not a valid exception for an early distribution from a retirement plan and will not be shown in the list of valid exceptions for this type of distribution.  

There are certain distribution codes that do not trigger the exceptions to the early distribution penalty.  If your Form 1099-R has one of those distribution codes, or your distribution is not subject to the early distribution penalty for another reason, then Form 5329 will not be included as part of your return.

To learn more, take a look at the following information from the IRS:

Retirement topics - Exceptions to tax on early distributions
 

[valentina]

My early distribution comes from an IRA. 

I was able to add the exception by going to additional tax options, which saved me $1,000.  The system has not flagged the exception as not applicable.

In addition, there is zero information on form 5329 despite it showing as a prefilled option in the search field which is odd. 

[AnnetteB6]

Since your distribution is from an IRA, here are a couple of things to consider.  

If the distribution was from a Roth IRA and the distribution amount is less than your total Roth IRA contributions (basis of the account), then the distribution is not taxable or considered to be an early distribution.  In this case, there would be no Form 5329 because there would be no penalty imposed.  

If the distribution was from a Traditional IRA, be sure that the box on the Form 1099-R that indicates it is an IRA has been checked.  Also, note whether you are seeing a message in TurboTax stating that you may owe extra tax on the distribution.  This indicates that there is a penalty that may be abated on Form 5329.  If you do not see that message, then the penalty is not being imposed and no 5329 is needed.

The information for Form 5329 exceptions will come up after all Form 1099-R forms have been entered and you Continue from the Form 1099-R summary page.

@Valentina