It seems you had a loss. You will still report the full excess deferral on your 2022 tax return ($2,131.65).
But the loss will have to be reported next year on your 2023 tax return:
- Login to your TurboTax Account
- Click "Federal" from the left side of your screen
- Scroll down to "Less Common Income" and click "Show More"
- Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
- Select "Other reportable income" and click "Start"
- Answer "Yes" to "Any Other Taxable Income?"
- Enter "Loss on Excess Deferral Distribution” and enter the loss as a negative number (-$55.06)
Please see Pub 525 for additional information.
@Have a nice day
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