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Thanks for the reply! I've tried deleting all IRA contributions and the 1099-R to start with a clean slate. Then I entered my wife's IRA contribution and the 1099-R info and checked the final return again but still have the same issue.
To clarify, the 8606 looks good (as far as i know). The issue is on the "Recharacterization Explanation" form which looks like this right now:
It seems like "The Amount Recharacterized" should pull from my answer to "How much of [Wife's] contribution to this Roth IRA did [Wife] switch, or "recharacterize", to your traditional IRA?" which I put $7000. The rest of the info in this form comes from my answers to the next question "Enter your recharacterization information". Is it possible this is just a bug? Or am I doing something wrong?