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Make sure that your investment company reports these distributions combined as a return of contribution, not as regular distributions. Assuming that they do so, you'll receive a 2017 Form 1099-R with codes J and P in box 7.
To report this in TurboTax, first, make sure that you have entered the original contribution under Deductions & Credits and in the follow-up indicate that you had the excess contribution returned. This will cause TurboTax to ask you to enter an explanation statement describing the return of contribution. Next, you'll need to enter into 2016 TurboTax the 2017 Form 1099-R as if you have already received it:
Be sure in the follow-up to indicate that this is a 2017 Form 1099-R.
If you are under age 59½, this is all you need to do. TurboTax will include the gross amount on Form 1040 line 15a and include the earnings on line 15b. TurboTax will also prepare Form 5329 to calculate the 10% early-distribution penalty on the earnings and include that penalty on Form 1040 line 59. However, if you are over age 59½, after clicking the Continue button on the Your 1099-R Entries page you'll need to claim an "Other reason" exception to the early-distribution penalty, reducing the penalty amount to zero.
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