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If the conditions for a corrective distribution are met, the original contribution is treated as if it had not been made, but the distribution of income earned by the IRA on the excess contribution is taxable in the year of the contribution.  So in your case the income removed, which is reported on your 1099-R must be included on your 2023 tax return.  You need to amend your 2023 tax return and report the income.  I'm not clear on exactly how you reported your excess contribution for your 2023 return, so I'm not sure what you need to report.  If you reported the excess contribution as if you had received a Form 1099-R, you can ignore that part and you only need to enter the amounts that relate to the earnings that are reported on the Form 1099-R.  The following are the instructions for how to report the removal of your 2024 excess contribution and earnings:   For a return of an excess Roth IRA contribution (with earnings when applicable) you will use code codes J and P.  Code P will indicate a "Return of contribution taxable in 2023".  That can be ignored since a follow-up question will tell the program that it is taxable in 2024.   Since you made a "timely correction" you will receive a 2025 Form 1099-R in 2026 with codes P and J. This 1099-R will have to be included on your 2024 tax return and you have two options:    Wait until you receive the 2025 Form 1099-R in 2026 and amend your 2024 return or Report it on your original 2024 return and ignore the 1099-R when it comes.   You can create a Form 1099-R in your 2024 return as follows:     Make sure you are logged in to your return  Click on the "Search" on the top right and type “1099-R”  Click on “Jump to 1099-R” Answer "Yes" to "Did you get a 1099-R in 2024?" Select "I'll type it in myself" Box 1 enter total distribution Box 2a enter the earnings (if applicable) Box 7 enter J and P Click "Continue" On "Is the IRA/SEP/SIMPLE box on this 1099-R checked?" screen answer "No, the box is blank"? On the "Which year on Form 1099-R" screen say that this is a 2025 Form 1099-R. Click "Continue" after all 1099-R are entered and answer all the questions. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".   You can do the same thing for your 2023 amended return, but adjust the amounts so they only include the income portion, if you reported the corrective distribution on your original 2023 return.

If you are using TurboTax Desktop you can click the blue "Start a New Return" button on the main screen when you first open the program (see screenshot). If you're using TurboTax Online you'll need to create a new account.   

When you start the amendment, you can click on Live Tax Advice (in the upper right hand corner) to add that feature.   Follow the instructions linked below.    How do I amend my federal tax return for this year?

Thank you very much, Mary.   For the prepayment, am I required to make the payment related to the realized gain over the underlying transaction before the coming quarterly due date (either federal or state)?   For example, I sold stock today with realized profit and I must make the estimated payment before Jun 16?  If I sell more in August, then pay before Sept 15?  I cannot make a large estimated payment at the year-end, right?   Thanks again!

My guess is that there is no amount in box 16 (state distribution).   Use the same amount you see in Box 1 and Box 2 (prob the same amounts) and that might solve the issue.  If boxes 1 and 2 are different, I would use Box 2 .

If you don't have a Form 1099-MISC, go back in the program to make sure there are no forms started.     Open or continue your return. Navigate to the 1099-MISC section: TurboTax Online/Mobile: Go to 1099-MISC TurboTax Desktop: Search for 1099-misc and select the Jump to link Select Delete next to the 1099-MISC  Answer Yes when you’re asked to confirm the deletion    

You're welcome.  And thanks for reporting back. It does sound like it was trying to connect to and use old payment info in your online account.  I'm glad you were able to update the payment info and proceed.  Good luck.

Yes, you can enter selling expenses when you enter the sale.   TurboTax will automatically create Form 8949 when you enter the sale.    Where do I enter Form 1099-S?   Or  search for home sale and use the Jump to home sale link.   Follow the instructions - you can enter selling expenses when you get to the screen below.  Sales expenses are listed in the sellers column of your settlement statement and include: - commissions - appraisal fees - broker's fees - legal fees - advertising fees - home inspection reports - title insurance - transfer taxes or fees - geological surveys - loan charges (points) or other fees paid on the buyer's behalf - any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.)   NOTE: Sales expenses do not include: - mortgage payoffs - home equity loan payoffs - rent-back costs - payoff to creditors - property taxes - home owner association fees    

One additional thought to my earlier reply.  Who wants to contribute $13k or more to the ER portion of ones Solo 401k plan if it makes no dent whatsoever to the tax liability? Especially when it will come out completely as income.  It makes no sense. 

If you have two or more W-2 forms that report the same federal wages and deductions but separate state wages and deductions, you can make one entry for them in TurboTax. Report the federal wages and deductions, then two or more state wages and deductions on the same W-2 entry. When you enter the state information, choose the box that says Add another box 14 item to report multiple state entries.