Get your taxes done using TurboTax

In the IRA contribution section you will enter on the penalty screen that you withdrew the excess contribution.

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Traditional IRA”
4. Continue until the penalty screen and enter the excess contribution amount withdrawn.

Another option is no not enter the traditional IRA contribution since you removed it.

To enter the Form 1099-R to report the earnings on the withdrawn excess contribution:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2023?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning)
7. Box 2 enter the earnings
8. Box 7 enter P and 1 
9. Check the "IRA/ SEP/ SIMPLE" box
10. Click "Continue"
11. On the "Which year on Form 1099-R" screen say that this is a 2024 1099-R.
12. Click "Continue" after all 1099-R are entered and answer all the questions.
13. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.

Form 5329 will only be create if you have earnings in box 2a. TurboTax will put the earnings on line 1 of Form 5329 and the enter code 21 for line 2 to get the exception of the 10% early withdrawal penalty.

@TaxpayerPaul