Deductions & credits

If you reported the ROTH IRA contribution on your tax return in 2021, and it was an excess contribution, there should have been a penalty applied based on the information you entered on your tax return. If not, then you'll have to amend that return to reflect the contribution so the penalty will be assessed. You will see an option to amend your 2021 tax return on your home page screen in TurboTax.

For 2022, you need to go through the IRA contribution entries and indicate that you had an excess contribution in 2021 that has not been corrected. You find that in the Deductions and Credits screen , then Retirement and Investments, then Traditional and Roth IRA contributions. You will see a screen that says Do You Have any Excess Contributions, to which you answer "yes" and you can enter your excess contributions from 2021.

You will get a Form 1099-R in 2024 which will represent tax year 2023 with code P in box 7 . If it is coded properly when you enter it in TurboTax the distribution will not show as taxable in 2023, since you didn't have any earnings.