Yes, the recharacterization has to be reported on your 2020 tax return.
You will enter the recharacterization when you enter the contribution to the traditional IRA
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution
- Enter the traditional IRA contribution amount $6,000
- Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount $3,260 (no earnings or losses)
- TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx minus $xxx.xx loss were recharacterized.
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