Usually, you can enter the withdrawal of the excess contribution on the penalty screen when you enter your IRA contribution but, in your case, you want to avoid that because then TurboTax won’t create Form 8606. The Form 1099-R with code P and J that you create for the withdrawal of the excess contribution plus earnings will show that you withdrew the excess contribution. Also, you should have gotten the “Explain the Return of Contribution” screen where you are able to explain that you made an excess contribution to the traditional IRA, converted it to Roth, and then removed the excess contribution plus earnings from the Roth IRA.
Yes, that it shows $24,000 on line 4a of Form 1040 as distribution is correct because you have $12,000 from the conversion to Roth and another $12,000 for the removal of excess contribution plus earnings. To verify you didn’t have any earnings, since it is exactly $12,000?
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