Is it giving you the extra 10% early withdrawal penalty? You can probably avoid that but I don't know how to enter it for Covid-19. You might also be able to spread the tax over 3 years.
And you didn't pay the tax. You had tax withheld like from your wages. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.
