Remove cream cheese from the refrigerator and let it sit at room temperature for about 10 minutes to soften—this ensures a smooth, lump-free dip. In a medium bowl, combine the softened cream cheese, room-temperature sour cream, 2.5 tablespoons taco seasoning, garlic powder, and freshly shredded cheddar cheese. Mix with a rubber spatula or wooden spoon until fully combined and smooth, about 2-3 minutes of stirring. I prefer to let the cream cheese soften slightly before mixing because it creates a creamier texture that blends more evenly with the other ingredients.

Heat olive oil in a large skillet over medium-high heat. Add the ground turkey and cook, breaking it apart with a spoon or spatula as it browns, until no pink remains (about 6-8 minutes). Once cooked through, sprinkle the remaining 2.5 tablespoons of taco seasoning over the turkey and stir well to distribute the seasoning evenly. Cook for another 1-2 minutes to let the seasonings bloom and incorporate into the meat. The double dose of taco seasoning (half during browning, half after) gives the turkey more layers of flavor.

Transfer the cream cheese mixture from Step 1 into a serving dish or small baking dish (8x10 inches or similar). Spread it into an even layer, then top with the seasoned ground turkey from Step 2, spreading it in an even layer over the cream cheese base. Fold the warm turkey gently into the cream cheese mixture with a few strokes to combine slightly, leaving some texture rather than fully blending it. If making ahead, cover and refrigerate; otherwise, you can serve at room temperature or warm it in a 325°F oven for 10-12 minutes until heated through.

Top the assembled dip with the diced tomatoes and black olives, distributing them evenly across the surface. These fresh, cool toppings provide bright flavor and texture contrast against the warm, creamy base. Serve immediately with tortilla chips or your favorite crackers.