You received a regular distribution. This distribution does not constitute a return of contribution because it was not made as an explicit return of contribution. For the distribution to have been treated as a return of contribution, the distribution is required to have been treated as an explicit return of contribution.
In 2024 TurboTax you must report the traditional IRA contribution and the regular distribution. If the contribution is treated as nondeductible, the distribution adds to your basis in nondeductible traditional IRA contributions on Form 8606 Part I. The taxable amount of the distribution is also calculated on Part I and only the taxable amount is subject to the 10% early-distribution penalty. If the contribution is not treated as nondeductible, the entire distribution will be taxable unless you already had some basis in nondeductible traditional IRA contributions from previous years.
However, because the distribution was made in December 2024, you are still within the 60-day window where you can roll the distribution back into the traditional IRA and then obtain a proper return of contribution (provided that it would not be a violation of the one-rollover-per-12-months limitation on rollovers because of a previous rollover that you did in or after December 2023). The original distribution would be reported as a rollover and you would receive a code P 2025 Form 1099-R that you would need to report on your 2024 tax return.
