Why does it claim that I withdrew from my savings early when I did not?

[rjs]

What is "it" that says you withdrew from your savings early?

What kind of savings are you talking about? Is it a savings account or a CD at a bank?

If you have an early withdrawal penalty in box 2 of a Form 1099-INT and you don't know why, you have to ask the bank or other financial institution that issued the 1099-INT. TurboTax has no way of knowing why you have the penalty. It's not a tax. It's the bank that charges the penalty. As far as TurboTax is concerned you just enter the information from the 1099-INT as it is.

Note that the penalty in box 2 of Form 1099-INT reduces your taxable income, which may reduce your tax or increase your refund.