How to report 1099-R code 8J on tax return?

Update: I contributed too much to my Roth IRA in 2016. In December of 2016 my excess contribution was returned to me, plus interest. The 1099-R correctly shows only the interest as taxable. Then it has code 8J. Why does the e-file software absolutely insist on filling out form 5329 and charging me an additional 10%... show more I contributed too much to my Roth IRA in 2016. In December of 2016 my excess contribution was returned to me, plus interest.

The 1099-R correctly shows only the interest as taxable. Then it has code 8J.

Why does the e-file software absolutely insist on filling out form 5329 and charging me an additional 10% penalty? This should NOT be subject to the 10% early withdrawal penalty because it is a Roth account and was returned within the same year.
Update 2: I contributed too much to my Roth IRA in 2016. In December of 2016 my excess contribution was returned to me, plus interest. The 1099-R correctly shows only the interest as taxable. Then it has code 8J. Why does the e-file software absolutely insist on filling out form 5329 and charging me an additional 10%... show more I contributed too much to my Roth IRA in 2016. In December of 2016 my excess contribution was returned to me, plus interest.

The 1099-R correctly shows only the interest as taxable. Then it has code 8J.

Why does the e-file software absolutely insist on filling out form 5329 and charging me an additional 10% penalty? This should NOT be subject to the 10% early withdrawal penalty because it is a Roth account and was returned within the same year.
Update 3: Is 8J the wrong code? Am I wrong about how Roths work? Or is the free software just crap?
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