IRA distribution for purchase of a home

I made and early withdrawal from Simple IRA and used the funds to purchase my first home. I meet all the criteria to avoid the early withdrawal penalty. On the 1099 that i received the gross distribution is 10000, taxable amount is 10000, taxable amount not determined is checked, distribution code is 2, IRA/SEP/SIMPLE is checked. Turbotax never asked me if i qualify for exceptions in the interview, even though my code is 2. It did ask me if inherited or rolled over or if i contributed to HSA but there was no question if i purchased a home... I deleted the form and entered it again as i read in another question, didn't work. I went to Deductions and credits and clicked Done, TT performed "check" and then asked me if i refinaced or took a mortgage - yes, I did... but there is no question if i used the money to purchase my first home and at the end the result is that the 10000 are taxable. These 10000 make my income go over 100000...
Please help
    Are you using the online or desktop version of the product? Unfortunately the online version does not support the First Time Homebuyer credit option since these returns cannot be e-filed.

    The desktop version of the product does provide an option to enter the First Time Homebuyer information, print your return, and mail it in.

    Information about TurboTax's support for the First Time Homebuyer credit can be found at
    • I am wondering the same thing. I think the other response, regarding first-time homebuyer credit does not apply to this case.
    • I am using the online version... Thank you, i will try with the desktop version then
    • Same problems here. I used money from a pension account to put towards the purchase of a new home and early in the turbo tax e-filing it said that the portion used for the purchase of a new home is exempt from the penalty but, at no point does it allows us to enter the information about that and I am using the $42.00 Premeir addtion that the website suggested I use for that very situation. What do I/we do now?
    Actually he is not talking about the first time home credit option through the stimulus plan as is indicated.

    He is asking about an IRA rule that allows "first home buyers a chance to take a distribution up to $10,000 from a traditional or Roth IRA tax and penalty free."

    Those who want to know about the qualified distribution rules should go to the website and look up the PUB 590 (This is for IRAs)

    *I am also having a problem located the qualified distribution exception code for first home purchase of up to $10,000.*
    • I'm finding the same problem - TT is not allowing me to enter the first time homebuyer option in regard to the IRA distribution....I keep re-checking the tax law, and it's exempt....why is TT trying to make me pay it?!
    • I have the same situation (Early withdrawal from SEP IRA of 11627 for my 1st home of which 1162.7 is withheld for tax ). I faced the same problem as the tired11111. Even when I got my tax reviewed (using TT tax review feature by Tax Resource) they suggested that I'm exempt from paying the penalty. But I don't know how and where to enter that I'm excempt. To make matters worse the 1099R form has box 7 has code 1 (in spite of me telling Fidelity about my withdrawal for home). So what should I do now. Its nearly filing time and I don't know if I should argue with Fidelity on this. But now I learn that the option to take this exemption is not even available in TT then why was this not disclosed earlier? Now I'm in a fix. This is real cheap on TT's part.  Please guide (at least).

    • I ended up going to an accountant to do my taxes. The result is - I don't pay early withdrawal penalty on these 10000 but i do need to pay taxes on them. They are taxable unfortunately
    I'm using the Home & Business edition - and it's at the verrrry end of the deductions & credits section - it asks about that. It asked me about that, the very end! Maybe you haven't gotten to that point in the interview yet?
      I had the exact same situation.  I just plugged in 2 instead of 1 for the distribution code and Turbotax instantly added back my 1,000$ penalty to my refund.  I know when I filled out the early distribution form for Wells Fargo that I also checked that was taking it based on an exception for first-time home buying.  As long as you can support the exception I say go for it -I am.
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