IRA roll over to Roth

You do not say that it was rolled over, you say that it was converted,

After entering 1099-R info I am asked if I moved the money to another retirement account to which I answered Yes as we rolled it to a Roth IRA.  Then I am told that I do not need to pay tax on this rollover, but since it was moved from a Traditional IRA to a Roth IRA I understood that I DO need to pay tax.  Should I instead answer that I did something else with it?  

If your Form 1099-R has code 2 in box 7, TurboTax is telling you that you do not have to pay an additional tax (an early-distribution penalty).