I made a withdraw from my Roth to replace a car. I was told I had put the money in, didn’t need to withhold taxes . Can anyone help explain why that’s incorrect?

[68pam]

I had totaled my previous vehicle and needed a way to work

[Opus 17 · Accepted solution]

You can withdraw up to the original amount of your contributions tax-free.  If you withdraw earnings, they are subject to income tax plus a 10% penalty if you are under age 59-1/2.

When entering the 1099-R, you have to go through all the steps, you can't exit early.  You will eventually be asked to give the amounts of prior contributions and any prior withdrawals, so Turbotax can determine if you are now withdrawing non-taxable contributions or taxable earnings.