Prior Year or untimely excess contribution + timely excess contribution in same year

[Talhakhan104]

Hi there. So. I made a excess contribtuion of 3320 in 2023. 

I also made a 1500 excess contribution in 2024

I paid the 6% tax on the 3320 in my 2024 tax return but never took it out. 

Now in tax return 2025 I took out a a timely excess contribtuion for 1500 +162.68 for gains on that 1500
and took out  a untimely excess contribution for that 3320 (Untimely does not require you to remove cap gains)
Both of these were taken out roughly April 2025

I dont quite understand how to report this in Turbo Tax.
Turbotax allows me to put in excess contributions for 2024 (1500), but I dont see an option to report untimely contributions or a form 5329. 

My understanding is that I will report the 162.68 in gains for 2024 excess as actual income and I will not be charged the 6% penalty on the 1500.

My understandign is that I will be charged the 6% penalty again for the 3320 untimely excess in 2023. 

I simply dont see how to input the 3320 into turbo tax. Can someone please help.
Turbo Tax allows me to report 

[fanfare]

"Both of these were taken out roughly April 2025"

Tax return 2025 is prepared and submitted in 2026.

Wait for your 1099-R, then reply back if issues.

@Talhakhan104 

[Opus 17]

You don't say what kind of account, but this sounds like probably a Roth IRA.  Let's do the 2 transactions separately.  (And nitpick--the earnings are just earnings, not capital gains.)

On your 2023 return, you show excess contribution of $3320 and paid 6% tax.  Since that excess was still in the account on December 31, 2024, you must report that excess and pay another 6% penalty.  Then you made a regular withdrawal of $3320 in April 2025.  That will be reported on your 2025 tax return.  Assuming this is a Roth IRA, and you have more than $3320 of contributions as basis in the account, the withdrawal won't be taxable, but it must be reported to clear the ongoing penalty.

Then, for the excess 2024 contribution of $1500 that was timely removed before April 15, 2025 along with attributed earnings of $162, that must be reported on your 2024 return.   Go to the 1099-R section and create a substitute 1099-R for the withdrawal.  Put the total amount in box 1, the taxable earnings in box 2a, and use codes P and J in box 7.  Those are the codes for earnings withdrawn in 2025 that are taxable in 2024.

In January 2026 you should get two 1099-Rs.  Report the one for the $3320 withdrawal on your tax return but you don't need to report the one for the $1668 withdrawal because that was taxable in 2024.

**Also note, the situation described could also apply to a health savings account (HSA).  In that case the tax consequences and reporting rules are different.  Please clarify if that is the case. 

[Opus 17]

"I simply dont see how to input the 3320 into turbo tax. Can someone please help."

If you used Turbotax in 2023, it should carry over.  If you are using Turbotax for the first time in 2024, I have not tested exactly where this is, but I would start in the IRA deduction section.  You need to report that you contributed $1500 for 2024.  If the program detects that you are ineligible, it will ask if you want to timely remove the contributions or pay the penalty, and you will tell the program that you will remove the contributions.  At some point in that interview, you should be asked if you have any prior excess contributions.  That's where you report the $3320.  If you can't find it, call customer support and ask.