Your situation is tricky to enter. Please also see this discussion
If all your value of all your traditional IRA is $0 on December 31, 2021, since you converted the amount then you might be able to try the following.
You will have to enter the nondeductible contribution to the traditional IRA but do not enter that you withdrew the contribution on the penalty screen so TurboTax will create Form 8606. Please make sure that you enter $0 as the value of all your traditional IRAs. Then TurboTax will not calculate a 6% excess contribution since the penalty is calculated by the smaller of the excess traditional IRA contribution or the value of your traditional IRAs on December 31, 2021. Therefore, the penalty will show $0 (please check line 17 f Form 5329)
The Form 1099-R with code P and J that you create for the withdrawal of the excess contribution plus earnings will show that you withdrew the excess contribution.
If this does not work then you might have to find a tax professional locally to help you with the situation.
To enter nondeductible contributions:
- Open your return
- Click “Deductions &Credits” on the top
- Click "I'll choose what to work on"
- Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution?”
- Enter the amount you contributed
- Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
- Continue through the questions and TurboTax will make the contribution nondeductible.
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