Get your taxes done using TurboTax

I reviewed your return. You didn't enter the recharacterization. You will need to enter the recharacterization with the steps below and TurboTax will make it automatically nondeductible because of your income. TurboTax will create Form 8606 for you.

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Answer “No” to “Is This a Repayment of a Retirement Distribution
5. Enter the Roth contribution amount 
6. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
7. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.

Also, you didn't enter the conversion, you selected it was cashed. Please follow these steps:

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3.  "Review your 1099-R info" screen click "edit" next to the 1099-R with code 2 in box 7
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
5. On the "Review your 1099-R info" screen click "continue"
6. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

Please ignore the summary screen it is only important what is showing on line 4b of Form 1040  as taxable income. The total distribution amount shown on line 4a is for information only and has no effect on your return.

@Wonderer1