You tell TurboTax that the excess has been removed so a penalty is not applied and the excess does not carry forward. You would enter $7500 as the total amount of your contribution. As you proceed with the entry, Turbo Tax will indicate that you have an excess contribution of $1500 and will ask you if you plan on withdrawing this before the due date of your return.(April 15)
Since you have already withdrawn the excess contribution, you will say "yes".The penalty will not be applied based on this answer..
To enter your Roth IRA contribution:
- On the left side of your screen, click Federal.
- At the top of your screen choose Deductions and Credits.
- Scroll down to Retirement and Investments.
- Click Start on Traditional and Roth IRA Contributions.
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