The following concurs with what should be done on your tax filing from Fidelity. For a recharacterization done in 2020 you will should have a 2020 1099-R to report it. A 2020 1099-R with a Code R means a recharacterized in 2020 for a 2019 contribution. A 2020 date does not indicate it was a 2020 contribution, but you should check with Fidelity to make sure they marked it as a 2019 contribution, if you do not see this clearly on the Form 5498.
The proper way to report the recharacterization and earnings which is to enter the 2020 IRA contribution in the IRA contribution interview section then, answer yes to "Did you switch from a Roth to a Traditional IRA - recharacterize".
The amount of the original Roth contribution must be entered - not any earnings or losses. TurboTax will ask for an explanation statement where it should be stated that the original dollar amount plus earnings (or loss) were recharacterized..
There is no tax or penalty on the before-tax earnings since the earning were simply switched into the recharacterized account.
This method allows for you to attach the proper line 15a explanation statement for a code R 1099-R.
Since the after-tax Roth contribution is now a Traditional IRA contribution it can be either a before-tax deduction depending on your modified adjusted gross income (MAGI).
Form 5498 is for informational purposes only and is not used on your personal return. Since the 2019 return was prepared correctly there is nothing to do on that return at this time.
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