The recharacterization should have been reflected on your 2020 tax return, with the 2020 tax return showing a traditional IRA contribution either deductible on Schedule 1 or nondeductible on Form 8606. If your 2020 tax return does not show this, you must amend your 2020 tax return to show this. Otherwise you can ignore the code-R 2021 Form 1099-R.
$8,602 was transferred to the traditional IRA because the gains attributable to the $6,000 were required to accompany the $6,000.
The code-2 2021 Form 1099-R must be entered into 2021 TurboTax. Indicate that you moved the money to another retirement account, that you did a combination of rolling over, converting and cashing out (even though you converted the entire amount), then indicate the amount converted. Be sure to Click the Continue button on the page that lists the Forms 1099-R that you've entered and verify that TurboTax shows the correct basis in nondeductible traditional IRA contributions so that TurboTax properly prepares Form 8606 to calculate the taxable amount of the Roth conversion. If your basis in nondeductible contributions was entirely from $6,000 shown on line 14 of your 2020 Form 8606 and you had no other funds in traditional IRAs on December 31, 2021, the taxable amount of your Roth conversion will be $3,518.
