" I first contributed to roth ira in 2021 and then recharaterized it later."
that makes it a contribution into the second IRA, your Traditional IRA.
"My case it says $5,298.47. "
assuming you put in $6,000, you recharacterized $6,000 and you have to state that. The loss does not count.
that makes your basis $6,000.
If you make the contribution non-deductible, TurboTax will put $6,000 on 2021 Form 8606 Line 14
that amount comes over to 2022 Form 8606 Line 2.
Your conversion is now untaxed.
when you convert $5, 290.47, you will have a remainder basis in IRAs and a final value of zero.
Note: this all assumes you had nothing in your Traditional IRA to start with.
since you are reporting two years together, Turbotax doesn't have the prior form to import,
you have to tell it the prior years basis when doing 2022.
That's what I meant originally that the Q&A responses would be tricky.
