Early withdrawal penalty. I see nothing removing the penalty on Turbo tax due to unemployment. Where am I missing the penalty?

I assume you are inquiring abut the CARES Act that temporarily waived the 10% early withdrawal penalty on up to $100,000 of withdrawals. To qualify, you had to have been diagnosed with COVID-19 or experienced financial troubles due to the pandemic, such as job loss, quarantine, furlough, reduction in hours, the closing of your business or lack of childcare.

The Covid related distributions must be reported on the new 8915-E form.

This form is necessary to report COVID related distributions from IRA's and other retirement plans to report the distribution, pay it back over 3 years or spread the tax over 3 years.

A COVID-19 related distribution is reported on a new 8915-E form that is not yet available and there is no estimated release date since the form is still in the draft state at the IRS.  Unfortunately, we do not know how long it will take the IRS to make the electronic form available.

You can sign up below for a link to receive an email when the form is ready.

The draft paper form 8915-E is here:
https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf

Also to see if you qualify for a COVID-19 related distribution see:
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-...

See this TurboTax FAQ to sign up for an e-mail when the form is ready.
https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-