Enter the Roth contribution in the IRA contribution section. Answer the question that it was recharacotrized to a traditional IRA. Be sure to answer the question that you wan to all non-deductible. Answer the explanation statement.
That should produce a 8606 form with the now non-deductible Traditional IRA basis on lines 1-5 if you have no other Traditional IRA basis.
Then enter the 1099-R for the Traditional IRA distribution and answer the follow up questions about the Roth conversion and additional questions after the 1099-R summary screen that would ask about non-deductible basis. And the total 2017 year end value of all Traditional IRA account. The 2017 IRA contribution that was entered should be used to calculate the taxable amount on lines 6-15 on the 8606 form.
If the contribution offsets the conversion and there are no Traditional IRA accounts open at the end of 2017 then the tax should be zero.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
