@DanaB27 Thank you for the explanation. The second scenario is applicable to me (Roth contribution, recharacterized as nondeductible traditional IRA contribution and then converted it to Roth?) .
I still have a few questions please:
1) On the "Here's your 1099-R info" I deleted the ROTH IRA 1099 (from recharacterization), and only kept the one from traditional IRA. However, I changed the taxable amount to only excess capital gains (e.g was $7k, I only reported $1K). I believe this is the correct approach ?
2) I filled out the "Tell Us the Value of Your Traditional IRA" with amount on form 5498
After the above steps, I saw tax due increase by the amount associated with the capital gains ($1000) from the conversion which tells me I am on the right track. I would like to understand whether steps 1-9 you described on scenario 2 are still required or am I good to go ? Also, will form 8606 be autocompleted as well ?
Thank you!
