I reviewed your file. It shows the correct taxable amount in line 4b of Form 1040 (gains of $2,298) but it still shows that you took a distribution (cashed it) instead of a conversion.
Please follow these steps to enter the conversion:
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- "Review your 1099-R info" screen click "edit" next to the 1099-R with code 2 in box 7
- 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”
- On the "Review your 1099-R info" screen click "continue"
- Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
- Answer the questions about the basis from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs
@Wonderer1
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