The gross distribution is different from the taxable amount but Turbotax puts the gross distribution in total income. Part of that is not taxable.

[ToddL]

You are seeing this correctly. 

The amount of a gross distribution is included in any TurboTax Summary Screen as "Total Income". That does not mean the entire amount is taxable income.

The gross distribution will be be included as "Income" in the program and on your tax return (Line 15a of Form 1040). 

Any taxable amount included in your "taxable income" (Line 15b of Form 1040).