Yes, if your 2022 Form 5329 showed a penalty on line 25 then you will have to amend your 2022 tax return and go to the IRA contribution section to indicate that you withdrew the excess contribution:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Continue until the penalty screen and enter the excess contribution amount withdrawn.
Yes, if you need to amend your 2022 return then you can add the Form 1099-R with code PJ, but entering the 1099-R with codes PJ won't remove the penalty you will have to indicate in the IRA contribution section that you withdrew the excess contribution.
You can just delete the excess contribution entry on your 2023 return since you did not have an excess contribution for 2022:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen delete the excess contribution from 2022 that was wrongly carried over.
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