Excess Roth contribution credit ?

It seems that you are able to apply some of your excess contribution as a Roth IRA contribution for 2023.

 

The easiest way to enter this amount is going through the IRA contribution interview:

 

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. On the "Do you have any Excess Roth Contributions" answer "Yes"
5. On the "Enter Excess Contributions" screen the excess contribution amount should have been carried over. 
6. On the "How Much Excess to 2023?" screen TurboTax will ask how much of $XXXX you want to apply to 2023. You can enter the amount shown in the question in the field next to "Excess to Credit to 2023 Roth IRA Contributions"

 

Please see What happens if I made an excess Roth IRA contribution for additional information.

The program is giving me the excess contribution amount of $1800. However, if I apply that full amount to this year it shows my total contribution as $2400 (which is the total of this year and all previous year's excess contributions) which is confusing because I'm only putting in $600 this year. Also, it takes away any penalties? The money is not withdrawn so there should still be penalties, correct? 

If you are able to make Roth IRA contributions for 2023 and didn't contribute the full amount then you are able to apply the excess contribution from prior years to 2023. This means the excess contribution is resolved and you no longer have to pay the 6% penalty.