In my case, the excess contribution of $500 had a loss, so my distribution was only 463.78 (loss of 36.22). I confirmed with fidelity that no taxes were withheld, so I should be able to input this in my 2022 extended return. So for box 1 gross distribution is 463.78, box 2a taxable amount is 0 (no earnings). What about box 3 capital gains, do I leave that blank or add the loss of -36.22? I went back and filled out the overcontribution and confirmed the removal in the tax breaks/IRA contributions section , and it looks like turbo tax is adding the the 6% penalty on that $500, even though everything I've read says there isn't a penalty as long as it was withdrawn in a timely manner before the tax deadline. Should I enter my IRA contributions as if I didn't over contribute since it was fixed?
