If you selected code 7 on TurboTax's 1099-R form, TurboTax isn't including any 10% early-distribution penalty on your tax return for this distribution. You are likely misinterpreting a change in your refund for some other reason such as the loss of a Retirement Savings Contributions Credit because of this distribution.
Examine Schedule 2 line 6 to see that no penalty is being included there with respect to this distribution.
