As BillM223 indicated, it was improper for you to request a return of the $370 because it was not an excess contribution. Only actual excess contributions are eligible to be returned and failing to complete the testing period for the last-month rule does not result in an excess contribution. Because there was no excess contribution, TurboTax does not provide an opportunity to indicate that you had some amount of excess contribution returned.
Because no return of excess contribution was permitted under these circumstances, the distribution of the $370 constitutes a regular distribution and must be treated as such. For failing to complete the testing period, on your 2024 tax return you'll still owe income tax and the 10% penalty on the amount that you would have been an excess contribution were it not for the last-month rule.
