Get your taxes done using TurboTax

When you removed your excess Roth contribution from your account, did you also remove the entry in TurboTax for it?  If not:

1. Go to the Deductions and Credits Section and click Update for Traditional and Roth IRA Contributions
2. On the "Tell us about your IRAs" screen, uncheck the box for Roth IRA contribution under your name, then Continue
3. On the pop-up "Are you sure you want to delete?" select "Yes, delete IRA data" and Continue, then Continue on the next page

Next will be instructions on how to get rid of the penalty for the earnings.

1. Go to the Income section
2. Click Start or Update for the IRA, 401(k), Pension Plan Withdrawals (1099-R) section
3. On the 1099-R Summary screen, click Done
4. Click Continue until you get to a screen "Let's see if we can lower your tax bill" - click Continue
5. On the "Tell us which person may have qualified for a penalty exception", click the pencil icon to the right of your name
6. Click IRA on the "Identify the plan" screen, then Continue
7. On the "These situations may lower your tax bill", scroll down and toward the bottom, you will see "Corrective distributions made before the due date of return" - enter the amount of the earnings in that box ($350 for you)

This will eliminate the 10% penalty on the earnings distribution.