Much more straightforward to complete the recharacterization before the end of 2025 rather than waiting until 2026. Doing so will mean that you will receive a 2025 Form 1099-R reporting the recharacterization instead of the recharacterization being reported on a 2026 Form 1099-R a year later. The amount of contribution that you will recharacterize is $8,000. The gain/loss-adjusted amount is the amount that will be transferred to accomplish the recharacterization of the $8,000 contribution.
Whether you do the recharacterization of this contribution in 2025 or 2026, in 2025 TurboTax you'll enter the original $8,000 Roth IRA contribution, then you'll tell TurboTax that you "switched" the $8,000 to be a traditional IRA contribution instead. TurboTax will subsequently prompt you to enter the required explanation statement. No need to make up any Form 1099-R even if you do the recharacterization in 2026.
