A taxpayer (Under 59.5) took a 401k hardship withdrawal for their dependent child's college tuition which is an exception to the 10% penalty.  However the 1099R was coded 1 (Early Distribution, No Known Exception) in Distribution box 7 making the software included the 10% penalty.  Did the Administrator code it incorrectly or is there a different way in the software to make it so it does not include the penalty?

Thank you.