"if I keep the money in the IRA, will I continue to be penalized each year? "
Yes, 6% a year. You would be best served to withdraw the excess by July 15th (this year only).
"I'm not sure which line the penalty is showing in because I am still in the middle of the Turbo Tax preparation of my tax return. "
I assume that you are using the Online product? If so, you can look at your real 1040 and Schedules 1, 2, and 3 at any time.
On the far left, click on Tax Tools, then click on Tools underneath it, then click on View Tax Summary in the center, then click on Preview My 1040 back on the left. Now you will be able to scroll through your 1040 as well as the three Schedules (if you have them).
Take a look and see where the tax appears on Schedule 2 (I assume this is where it will appear).
If you are using the CD/download product, you can go into Forms mode and see every form at any time.
***I am not clear on something - did you have other earned income besides this one W-2?
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