The Form 1099-R should have had the code "8" in box 7 to indicate that the distribution was a return of contributions taxable in 2023. You probably can't get the Form 1099-R corrected, so a work-around solution would be to indicate in TurboTax that you made non-deductible contributions to your IRA in prior years. You will be asked to enter the amount of your basis at end of 2022, to which you will enter $7,500 in this instance. You will then be asked to enter you balance at end of 2023 for which you will enter $0. Then the distribution will not show as taxable on your return. You will see these questions after you enter your Form 1099-R.
[Edited 2/5/24 at 4:02 PM PST] @sp16673
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