Yes, $7,600 would be the entry in box 1, which would be the total amount you receive. $350 would go in box 2 as the portion that is taxable income. You would answer $7,250 as the amount of the excess you withdrew. I'm not sure why you are getting the message regarding an additional withdrawal.
I suggest you look on your Schedule 2 to see if there is a penalty showing up for excess IRA contribution on line 8. If not, you should be OK.
Also, you need to enter a substitute Form 1099-R to report the one you will receive in 2027 on your 2025 return. Here are the steps:
To enter a substitute form 1099-R in Turbo Tax Desktop follow these instructions:
- 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)
To enter a substitute form 1099-R in Turbo Tax Online follow these instructions:
- 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
- Choose the source of your 1099-R form
- Enter your pension distribution into the Form 1099-R entry screens
- 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)
- When you come to the screen that says Do any of these situations apply to you? Check the box that says I need to file a substitute 1099-R and follow the instructions
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