You mention possibly performing one of two entirely different types of transactions: conversion and recharacterization. You seem to be proposing a recharacterization and are misusing the word "conversion" to mean recharacterization.
A recharacterization from traditional to Roth makes it as though your original contribution was deposited into a Roth IRA instead of to the traditional IRA, subject to the normal MAGI limitations on making a Roth IRA contribution. A Roth conversion retains the traditional IRA contribution and involves a taxable distribution and rollover to a Roth IRA. The difference is in how any investment gain or loss on the earnings is treated and the type of basis created in the Roth IRA. With a recharacterization the investment gain or loss while in the traditional IRA simply becomes investment gain or loss in the Roth IRA. With a conversion any investment gain while in the traditional IRA is taxed and becomes conversion basis in the Roth IRA.
Since you'll be doing either of these transactions in 2023 with regard to your 2023 traditional IRA contribution, neither is difficult to enter into TurboTax. There is no significant difference in the complexity in reporting these two types of transactions except that with a recharacterization TurboTax will prompt you to provide a simple explanation statement describing the recharacterization.
With investment gains while in the traditional IRA, it probably makes more sent to do a recharacterization instead of a conversion to get the advantage of having Roth IRA contribution basis instead of conversion basis in the Roth IRA. If there was a substantial loss while in the traditional IRA it might make sense to do a Roth conversion instead, saving some in taxes but creating conversion basis instead of regular contribution basis. Conversion basis would have to remain in the Roth IRA until 2028 before it could be taken out penalty-free before age 59½.
If your MAGI relative to your filing status does not permit a Roth IRA contribution for 2023, conversion is your only option.
Regarding Form 8606, a recharacterization to a Roth IRA does not involve Form 8606. On the other hand, a Roth conversion must be reported on Form 8606. TurboTax automatically prepares Form 8606 when your contribution and Form 1099-R entries indicate that it is required.
