Apparently the broker made a return of excess contribution of the $3,000, distributed an adjusted amount of $3,042.30, then deposited the $3,042.30 as a contribution for 2018 (so make sure to include the entire $3,042.30 when reporting your Roth IRA contributions for 2018 next year when you prepare your 2018 tax return).
Since you won't receive the 2018 Form 1099-R until next year, to report the earnings on your 2017 tax return you must enter the 2018 Form 1099-R as if you have already received it:
- Box 1 = $3,042.30
- Box 2a = $42.30
- Box 7 = codes J and P
2017 TurboTax's drop-down text will indicate that code P means taxable in 2016, but that assumes that you are entering a 2017 Form 1099-R. In the Follow-up you'll indicate that you are entering a 2018 Form 1099-R on which code P means taxable in 2017. The $42 will be included on Form 1040 line 15b and the 10%, $4 early-distribution penalty will be included on Form 1040 line 59. If you were over age 59½ at the time of the return of contribution, you can claim an Other reason exception to the early-distribution penalty on the $42.
