Hello, I took a CARES act distribution from my 401k in 2020 and had them take 10% taxes out. Turbo Tax is assessing a penalty to me?

CARES Act retirement plan distributions can be paid back over 3 years or the tax spread over 3 years.

That and a CARES act distributiin 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. There is no telling how long it will take the IRS to make the electronic form available. Typical it takes the IRS 2-4 weeks to release the electronic form specifications after the paper version is released. e-file providers must program from the electronic specifications.

The draft paper form is here:

https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf