Where is it showing up as income? Look at the actual tax return form, not the summary screen in TurboTax. On your Form 1040 the total amount of the distribution should be on line 4a, and line 4b should be zero. The income summary screen in TurboTax shows the amount of the distribution, but that doesn't mean it's being treated as taxable income.
See the following FAQ for instructions to view your Form 1040 in TurboTax Online.
How do I preview my TurboTax Online return before filing?