@rlsiegel78 , in the Roth IRA contribution section of 2021 TurboTax you should have indicated that you had $6,000 of contribution returned, eliminating the excess from your 2021 Form 5329. In required explanation statement you would have indicated that the distribution to accomplish the return of the $6,000 was $4,500 due to investment losses. Nothing regarding this return of contribution should appear on your 2022 tax return. You should not see the $1,500 anywhere on your 2022 tax return.
"turbotax is still wondering when I will declare the $1500 loss."
Where do you see that? Did you mistakenly indicate that you had only $4,500 of the contribution returned and $1,500 is incorrectly appearing on 2022 Form 5329 line 18 (carried over from Part IV of your 2021 Form 5329 which should not have anything in it)?
The $1,500 loss is not reportable other than mentioning it in the explanation statement that should have been included with your 2021 tax return.
