You don't report the contribution in 2024, but you will need to report the distribution on your 2024 tax return. It won't be taxable accept for the interest income. You can do that when you file your 2024 tax return or wait until 2025 and file an amended return for 2024 to report the distribution and earnings on it. If you do it in 2024, you need to enter a substitute Form 1099-R in TurboTax.
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)
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