Get your taxes done using TurboTax

No, you don't need to enter Form 1099-R with code R. Form 1099-R with code R will do nothing to your return. You can only report it as mentioned below. Therefore, you can ignore the Form 1099-R with code R.

You will enter the recharacterization when you enter the contribution to the Roth IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer ‘Yes” on the “Roth IRA Contribution” screen
6. Answer “No” to “Is This a Repayment of a Retirement Distribution
7. Enter the Roth contribution amount 
8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
9. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
10. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" since you are doing a backdoor Roth.  If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible.

If you didn't report the recharacterizations on your 2022 and 2023 returns with the steps above then you will need to amend your 2022 and 2023 tax returns. Please see  How do I amend my federal tax return for a prior year?  TurboTax will create a 2022 and 2023 Form 8606 when you make the traditional IRA contribution nondeductible.

You will have to start with 2022 and carry the basis on line 14 of the 2022 Form 8606 to 2023. TurboTax will ask during the contribution interview and after entering all 1099-Rs: “Any Nondeductible Contributions to Your IRA?” select “Yes” since you had a nondeductible contribution in 2022 because of the recharacterization and enter the basis from your 2022 Form 8606 line 14.  This carried over basis will show up on line 2 of your 2023 Form 8606. The basis on line 14 of your 2023 Form 8606 will have to be entered on your 2024 tax return.