I'm sole proprietor 1099. I opened and contributed to solo 401k from that 1099 income in Dec 2024. I shouldn't have contributed since my business was at loss.

I am requesting my brokerage to remove the excess deferral in March 2025. I haven't filed 2024 tax yet. My question is: I am reporting that 1099 income. If I also report excess contribution, won't that same income be taxed 2 times? How should I report to Turbotax and IRS? Thanks in advance!