Get your taxes done using TurboTax
You recharacterized $2,500 but transferred $3,100. I have to admit that the title “Tell Us How Much You Transferred” is confusing because TurboTax asks how much you recharacterized.
In this example, the person contributed $6,000 to a Roth and wants the report the recharacterization. Please note how it states on the screen “How much of the $6,000…”. Therefore, you only enter the contribution amount (in your case $2,500) as recharacterized not any gains or losses.
I believe AmyC was referring to that the whole $3,100 will be transferred and the gains will be treated as earned in the traditional IRA. Please note how she mentions that your basis will be $2,500.
