In April 2021 I found that my income was too high to qualify for Roth IRA. The contribution was for tax year 2020. I did a recharacterization Roth IRA to traditional IRA $7946 (the number is calculated by the broker). After 5 days, the number increased to $7975. I did a conversion of all to Roth IRA.
In June 2021, I deposited $6000 to Traditional IRA directly, and after 5 days did a conversion of $6000 to Roth IRA.
In 2022, I received two 1099-R forms for tax year 2021. One is $7946 associated with the recharacterization, with distribution code "R". The other is $13975 ($7975 + $6000) associated with the conversion, with distribution code "2".
I run into multiple issues when using Turbotax.
1) Turbo tax suggest "I might need to amend my 2020 tax" -- I do have turbotax 2020 but how?
2) After I entered both 1099-R forms, my tax increase a lot. It seems that I have to pay tax for ~$20000 which does not make sense to me.
3) Do I have to take the gaining of 7975-6000=1975 ou?
Thank you very much!
