Get your taxes done using TurboTax

1. Yes, you will report both Forms 1099-R, one with code N and one with code P and 1.

2. The earnings you had before you recharacterized the Roth IRA contribution as a Traditional IRA contribution are deemed to have been earned in the Traditional IRA because of the recharacterization (IRS). Therefore, all earnings from the time you made the Roth IRA contribution until you removed the excess from the Traditional IRA should have been considered as part of the earnings when you requested the withdrawal of excess contribution plus earnings.

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. Continue until the penalty screen and enter the excess contribution amount withdrawn.