@macuser_22 - Looks like you understand this challenge well, but didn't want to intrude on other posts.
I made a 2020 Roth IRA contribution in early 2020. Then prior to filing my 2020 taxes in early April 2021, I realized the capital gains from a stock sale now left my MAGI too high to make any 2020 Roth contributions.
On April 1, 2021 before filing, I had Vanguard recharacterize the $6000 into a Traditional IRA. They included $281 in gains. So I have just received a 1099-R from the Roth IRA for $6281 with code R in box 7. I also see a 5498 in my Vanguard account from May 2021 still indicating a $6000 Roth contribution for 2020 in box 10.
Then, on April 5, 2021, I did a conversion of the $6281 from that Traditional IRA into my Roth IRA. So I have also just received a second 1099-R from the Traditional IRA for $6281 with code 2 in box 7.
When TurboTax pulls in these 1099-R forms, I end up with $12,562 of income. My understanding from Vanguard is that this should have resulted in $0 of taxable income. But I'm stuck on how to get there.
