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What is the code in box 7 for the 2023 Form 1099-R for the returned excess deferral? Is 8?

You must include the excess deferral in your wages on line 1h of Form 1040 in the year the excess deferral happened, in your case in 2023. And you only need to do this once. 

I assume the new Administration will issue a 2024 Form 1099-R with code P.  If your reported the excess deferral on your 2023 return then you can ignore this form.

Earnings on the excess deferral will have to be reported in the year they were distributed and should be reported on a Form 1099-R with code 8.

Please see Pub 525 for additional information.

Another option to add the excess deferral to your wages in TurboTax without entering Form 1099-R:

1. Login to your TurboTax Account 
2. Click "Wages & Income" (under Federal) on the left side of your screen
3. Scroll  down to "Less Common Income" and click "Show More"
4. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
5. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
6. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
7. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
8. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
9. On the "Any Other Earned Income" screen enter "2023 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".