Retirement tax questions

Yes, it seems you selected the wrong option when you answered the follow-up questions after entering your Form 1099-R. 

You selected rollover you need to select that you converted the funds.

For TurboTax Online:

1. Enter the information from your 1099-R
2. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
3. Confirm that you converted all of the $12,000 to Roth

For TurboTax Desktop/Download:

1. Enter the information from your 1099-R
2. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
3. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the $12,000 next to "Amount converted to a Roth IRA account"

@Jenny011