I contributed $5500 to Roth IRA in January 2017. Got married and exceeded the limit. The 2017 contribution was recharacterized to non-deductible traditional IRA contribution in 2018 prior to filing 2017 tax return. I then converted back to Roth IRA with a small gain. 2017 tax return reported the recharacterization/non-deductible contribution on form 8606.
I received 1099-Rs for both steps in 2018 - entered both into TurboTax for 2018. (Recharacterization out of Roth 1099R has box 2a with zero and 7 marked R/ conversion from trad. to roth 1099R has box 7 marked 2 and IRA/SEP/SIMPLE box checked). Form 8606 appears to be calculating correctly, showing only the gain over $5500 as taxable - no problem there. However, Turbotax is printing form 5329 with an amount of $5500 on line 18 as carryover from 2017 form 5329. No form 5329 was filed in 2017. How can I get this to be removed? Because of this, a 6% penalty on the $5500 is being calculated and added to my return, which I believe to be is incorrect. I read elsewhere there was a bug related to box 7 being marked 1 - not my issue since my box is marked R, but perhaps a similar bug?
Also, for confirmation, when entering the recharacterization 1099R, TurboTax prompts that I need to amend 2017 - this is not correct since I have already filed the necessary 8606 in 2017 as required?
Thanks in advance.
