No, you don't say you contributed to an IRA in 2024, since you withdrew the money. You will have to report the distribution of the IRA funds on your 2024 return along with the nominal earnings on it. You can either do that when you file your 2024 return or file it without reporting the distribution and then file an amended return to report in when you get the Form 1099-R in 2026.
To enter a refund of excess IRA contributions received in 2025 for 2024 contributions on your 2024 return, follow these steps:
- Go to the personal income section of TurboTax
- Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
- Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
- Choose Add Another 1099-R
- Choose I'll type it in myself
- On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R
- Enter the distribution amount in box 1 of the substitute 1099-R
- Enter the earnings in box 2(a)
- Enter code "P" in box 7 (And code "J" if from ROTH IRA)
For the $3,600, you would have to make the same entry to report the distribution and earnings on the contribution. I don't believe the W-2 entry will create a penalty in TurboTax but it may. If it does and you can't get a corrected W-2, you will have to leave that entry off the W-2 input in TurboTax. That could invite an inquiry from the IRS after you file your tax return, but if it does you can explain what happened to resolve the issue.
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