Can I enter an IRA distribution that was used to purchase my first home?

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.

In TurboTax, please follow these steps:

1. After you have entered all your forms 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.