The Form 1099-R has code P and J? And you reported this on your 2023 return by entering a 2024 Form 1099-R with codes P and J?
Are you seeing a penalty on Form 5329 part IV, if yes then you had the excess contribution carried over. Since you removed the 2023 excess contribution plus earnings before the due date you shouldn't have had a 6% penalty on your 2023 return. You will have to amend your 2023 return to remove it. Also, if you didn't report the 2024 Form 1099-R with codes P and J then you will have to add this to your 2023 amended return as well.
To remove the 6% penalty on your 2023 return:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Continue until the penalty screen and enter the excess contribution amount withdrawn.
To report the 2024 From 1099-R with codes P and J on your 2023 return:
- Login to your TurboTax Account
- Click on the "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Enter Form 1099-R and continue
- 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".
Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.
On your 2024 return to remove the 6% penalty:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen delete the entry that got carried over.
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