@DanaB27 Thanks for your reply but I am a little confused here
In your first reply
8. 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.
Since I didn't put the earnings in 2020 tax filing. I guess I have to amend it?
In your last reply
1) No, you do not need to amend your 2020 tax return for Form 1099-R with code R. A Form 1099-R with code R will do nothing to your return. You can only report it as mentioned above. Your 2020 Form 8606 should have a $6,000 basis on line 14. The gains are treated as earned in the traditional IRA and are not part of the basis.
I guess what you mean is that, even I did the amendment of 2020, my 8606 line 14 is still $6000. In original 2020 tax return I only put $6000 there. But even I put $6000 + $1950 earnings, Form 8606 line 14 will still be $6000. Since only this $6000 will be entered to 2021 tax return, amending 2020 or not do not affect how I file 2021 returns.
