Question 1. Yes, you will enter the $1,000 as contributed to the Roth IRA.
The recharacterization screen is a bit tricky. Yes, your institute had to transfer the contribution and earnings but TurboTax asks how much of your $1,000 contribution was recharacterized and here you would enter only the $1,000 contributed (disregard any earnings and losses).
Question 2. Yes, since you actually contributed a total of $2,000 to the Roth for 2020 and recharacterized $2,000 you will enter your $2,000 contribution and $2,000 as recharacterized on the “Tell us how much your transferred” screen on your 2020 tax return.
Question 3. The total on line 1 of Form 8606 will be $4,000 the amount you contributed and wasn't deductible.
No, the gains/earnings will not be included on your basis on line 14 Form 8606.
@dhuynh44
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