Yes, if you had a loss with the return of the 2021 excess contribution then box 2a on your 2022 Form 1099-R with code PJ should be $0. Therefore, it isn’t taxable since only earnings are taxable on your 2021 tax return.
Yes, you correctly reported it in 2021. You don't need to enter the 2022 Form 1099-R with code PJ on your tax return unless you had taxes withheld. Then you will have to enter Form 1099-R to apply the withheld taxes to 2022. Code P will tell TurboTax to ignore the distribution but the withheld taxes are applied to your 2022 tax return.
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