No, you do not need to amend your 2022 tax return, since you removed the excess contribution you do not need to enter the Roth IRA contribution.
Generally, any earnings returned with the excess contribution for 2022 belong on your 2022 return and would be taxable.
But since you had a loss when you withdrew the excess contribution then all TurboTax will do is add an explanation statement why you returned the excess contribution when you enter a 2023 Form 1099-R for the return of excess contribution with a loss. Therefore, you don't have to report a taxable event.
If you want to add the 2023 Form 1099-R with codes P and J for the return of excess contribution (with loss) to your 2022 return then please follow the steps below:
- Login to your TurboTax Account
- Click on the "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Answer "Yes" to "Did you get a 1099-R in 2022?"
- Select "I'll type it in myself"
- Box 1 enter total distribution (contribution minus loss)
- Box 2a enter $0
- Box 7 enter J and P
- Click "Continue"
- On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
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