You don't say what kind of account, but this sounds like probably a Roth IRA. Let's do the 2 transactions separately. (And nitpick--the earnings are just earnings, not capital gains.)
On your 2023 return, you show excess contribution of $3320 and paid 6% tax. Since that excess was still in the account on December 31, 2024, you must report that excess and pay another 6% penalty. Then you made a regular withdrawal of $3320 in April 2025. That will be reported on your 2025 tax return. Assuming this is a Roth IRA, and you have more than $3320 of contributions as basis in the account, the withdrawal won't be taxable, but it must be reported to clear the ongoing penalty.
Then, for the excess 2024 contribution of $1500 that was timely removed before April 15, 2025 along with attributed earnings of $162, that must be reported on your 2024 return. Go to the 1099-R section and create a substitute 1099-R for the withdrawal. Put the total amount in box 1, the taxable earnings in box 2a, and use codes P and J in box 7. Those are the codes for earnings withdrawn in 2025 that are taxable in 2024.
In January 2026 you should get two 1099-Rs. Report the one for the $3320 withdrawal on your tax return but you don't need to report the one for the $1668 withdrawal because that was taxable in 2024.
**Also note, the situation described could also apply to a health savings account (HSA). In that case the tax consequences and reporting rules are different. Please clarify if that is the case.
