Withdrawal of contributions is never taxable.
Withdrawal of conversions (amounts converted from a traditional IRA to a Roth IRA) are subject to a 10% penalty if the conversion was less than 5 years ago AND you are under age 59-1/2.
Withdrawals of earnings are subject to regular income tax if you are under age 59-1/2 or if it has been less than 5 years since you opened a Roth IRA, even if you are over age 59-1/2.
Turbotax doesn't know from the 1099-R, whether any part of the distribution was earnings, conversions or contributions. You have to provide that information.
With a Roth distribution, one of the codes in box 7 must be J, Q or T (in addition to a number code). If the 1099-R does not have a J, Q or T in box 7 you may have been given an incorrect form. If you did not enter the codes correctly, go back and edit them in the program.
