Yes, if you reported the 2022 Form 1099-R with code PJ on your 2021 tax return then you only need to enter it on your 2022 tax return if you had taxes withheld. If you didn’t have any taxes withheld then you can ignore it for the 2022 tax return. Generally, it is best to avoid withholding taxes with the return of excess contributions and earnings because they won't be applied to the same year when Form 1099-R has codes PJ.
Yes, since you had all excess contributions removed you shouldn’t have any penalty calculated on Form 5329 for 2022:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the $50 that should be carried over and that you removed in 2022 with the 2022 Form 1099-R code J.
To enter Form 1099-R with code J:
- Login to your TurboTax Account
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen
- Answer all the questions and make sure you enter the net contributions prior to 2022 (include the $50 excess contribution in this amount) on the "Enter Prior Year Roth IRA Contributions" screen
- Answer the remaining question.
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