Q1. Yes, if you had a loss then box 1 will be the distribution amount and box 2a will be $0 with codes P and J in box 7.
Q2. Yes, you will have an explanation statement for the return of contribution where you will enter that the $6,000 excess contribution for 2022 was removed by the due date with a loss of $1,000.
No, you should not need Form 8606. Please see Who Must File Form 8606 for details.
@Anne_2022
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