Retirement tax questions

1) No, the gain is not excess contribution.

3) Yes, you can convert the money. If the traditional IRA contribution was nondeductible and filed Form 8606 on your 2019 tax return, then only the earnings would be taxable (assuming you didn't have any other traditional IRA with deductible contributions).

You can ignore the 1099-R with code R if you entered the recharacterization on your 2019 return like this:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Answer “No” to “Is This a Repayment of a Retirement Distribution
5. Enter the Roth contribution amount 
6. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
7. 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.
8. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you are thinking about doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible and you only get a screen saying $0 is deductible)

If you didn't report it like this, then you will have to amend your 2019 tax return. Please see How do I amend my 2019 return?