Roth 401k to Roth IRA to Early Withdrawal - PENALTY

[MH05282015]

My young adult son took a total distribution from his Roth IRS - started contributing in 2022.  At first, TurboTax was calculating this as taxable income.  I finally figure out how to make it show non-taxable.  And read that others had this same issue.

Now my question is that the 1099-R shows that $500 was withheld (federal) from his distribution.  The $500 withheld is being added to his W-2 withholdings.  

I didn't see a place to enter that he owes this penalty.  Therefore, I feel I'm increasing the withholding amount, thus getting a larger refund.

Where would I put that he should pay the penalty - which would be offset by the withholding?

Thanks.

[DanaB27]

You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Therefore, only withdrawn earnings would be subject to the 10% early withdrawal penalty. TurboTax will automatically calculate the penalty if he doesn't qualify for an exception. You can check Schedule 2 line 8 if he had a penalty.