My Roth IRA distribution in 2024 was less than my contributions in 2024. Shouldn't this be tax exempt? I answered all of the questions, but it still says 10% penalty.

You may be subject to a penalty, depending on how you managed your distributions. The distributions are treated separately from the contributions. Since you have code "J" in box 7, it means the distributions was early, so that is why you are being penalized. If you rolled the distribution into another Roth IRA within 60 days of when you took it, you wouldn't have pay the penalty however. You can only do this once a year though.

If that applies to you, you need to indicate that in TurboTax after you enter your 1099-R form information, on the screen that says What Did You Do With The Money From (name of broker). You need to indicate that it was moved to another retirement account and rolled over to another Roth IRA: