For the 2021 excess contribution to your Roth IRA, you need to withdraw the $1,500 if you want to avoid paying the 6% excise tax every year. Remember that you will continue to pay that tax every year that the excess remains in your Roth IRA. As you did not withdraw it before 12/31/2022, you will have to pay the 6% for tax year 2022.
For the 2022 excess contribution, you need to withdraw it (together with earnings/losses) before April 18, 2023 to avoid the 6% excise tax.
If you do this, on your 2022 tax return, you do not report the excess contribution as it has been withdrawn. The earnings have to reported and taxed in 2022. These earnings are also subject to 10% early withdrawal penalty if you are younger than 59 1/2.
If there is a loss, that loss is not deductible.
When you receive the 2023 form 1099-R (in 2024) for this withdrawal, there is no further action needed.
@JamesPNW I have edited my answer after comments by dmertz
@dmertz Thank you for your input.
[Edited 03/17/2023 | 12:48 PM PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
