Deductions & credits

The 2023 Form 1099-R with codes PJ should have been reported on your 2022 return but since you had no earnings there isn't any taxable income and you do not need to amend your 2022 tax return. It isn't an issue that you entered it on the 2023 return since the 2023 code P will tell TurboTax not add anything to your income in the 2023 tax return but any withholdings from box 4 or 14 will be applied to 2023.

You shouldn't have entered anything on the "Enter Excess Contributions for Prior Years" screen since you withdrew the excess contribution before the due date. You will need to amend your 2023 return to remove the entry and the 6% penalty. You will also enter the 2024 Form 1099-R with codes PJ on your 2023 tax return to report the earnings in box 2a.

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Enter the 2024 Form 1099-R with codes PJ
5. Click "Continue"
6. On "Is the IRA/SEP/SIMPLE box on this 1099-R checked?" screen answer "No, the box is blank"?
7. On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
8. Click "Continue" after all 1099-R are entered and answer all the questions.
9. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.

Please make sure you delete the entry on "Enter Excess Contributions for Prior Years" screen during the IRA contribution interview on your 2024 and 2023 return since you withdrew the excess contributions before the due date.

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. On the "Enter Excess Contributions" screen delete the entry.

You do not need to enter the 2024 Form 1099-R with code PJ on your 2024 return unless you had tax withholdings. Then you must enter the 2024 Form 1099-R into the 2024 tax return since the withholdings are reported in the year that the tax was withheld. The 2024 code P will not add anything to your income in the 2024 tax return but the withholdings will be applied to 2024.