For one thing, you received a Form 1099-R reporting a $500 distribution from your Roth IRA. The code "J" on it indicates that it is an early distribution, so the earnings on it would be subject to a penalty tax. Also, I don't know why you received that because you only mentioned you transferred money from a traditional IRA to a Roth IRA. As such, there would be no distribution from the Roth IRA.
It is possible that you made a contribution to the Roth IRA in error, then withdrew it, put it into the traditional IRA then rolled it over to the Roth IRA. If so, you should have code "P" in box 7 and any earnings should be in box 2.
The $503.89 distribution from the traditional IRA would be taxable unless when you made the entry for the contribution to it you indicated that it was a non-deductible contribution. Here are instructions on how to enter a backdoor Roth IRA conversion:
For the backdoor IRA, enter a traditional IRA contribution in the Deductions and Credits section of TurboTax, then Retirements and Investments, then Traditional and Roth IRA Contributions. Indicate that your traditional IRA contribution is non-deductible when asked in the program.
When you enter the 1099-R form in TurboTax for the rollover of funds to the Roth IRA, you need to first indicate that you moved the money to another retirement account and that you did a combination of rolling over, converting or cashing out the money. Then, enter the amount converted to a ROTH IRA. Later on you need to indicate that you tracked non-deductible contributions to your IRA.
Later in the routine enter the basis (non-deductible contributions) of your traditional IRA at the end of the previous year, and later the value of your traditional IRA at the end of the current year.
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