2024:
When you enter the 1099-R, TurboTax will ask if it was a "Return of Contribution." Once you confirm it was an excess contribution removed by the deadline, it should result in $0 tax impact.
No need to amend 2024 since you had a loss, there is no taxable income.
2025:
Another loss would mean nothing to report this year.
Since your AGI is high, you could consider doing a backdoor ROTH.
- Recharacterize the contribution to a Traditional IRA, giving you a basis and filing form 8606.
- Convert the traditional back to a ROTH. There is no income limit on a conversion.
If you had earnings to withdraw in 2025:
You can report the withdrawal now so you don't have to amend your taxes later.
- In the "Deductions & Credits" section, enter that you contributed $8,000 to a Roth IRA for 2025.
- TurboTax will calculate that you are over the limit. When it asks, "Did you withdraw the excess?" say Yes.
- Look for the amount of earnings withdrawn. Enter the specific profit amount provided by your financial advisor.
- Go to the Income section and manually enter a 1099-R.
- Enter the information from your brokerage for TN/ EIN, name, address, etc.
- Box 1 (Gross Distribution): Total amount (Contribution + Earnings).
- Box 2a (Taxable Amount): Just the Earnings.
- Box 7 (Codes): Use Code P (for return of excess) and Code J (for Roth).
- TurboTax will then ask which year this form is for; select 2026.
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