Retirement tax questions

To clarify, you made an excess Roth IRA contribution for 2020, then recharacterized this in 2021 before the due date of the 2020 return as nondeductible traditional IRA contribution. After this you converted the amount from the traditional IRA to Roth IRA in 2021 but forgot to include the SIMPLE IRA balance in the total value of all of your traditional IRA, SEP, and SIMPLE IRA accounts on December 31. 

On your 2020 return you should have reported the recharacterization and made the traditional IRA contribution nondeductible with these steps:

1. Open your return
2. Click “Deductions &Credits” on the top
3. Click "I'll choose what to work on"
4. Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
5. Select “Roth IRA”
6. Answer ‘Yes” on the “Roth IRA Contribution” screen
7. Answer “No” to “Is This a Repayment of a Retirement Distribution
8. Enter the Roth contribution amount 
9. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
10. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
11. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

You should be able to correct the value for the years you converted the traditional IRA to Roth IRA following the steps below: 

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start/Edit" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. On the "Your 1099-R Entries" screen click "continue"
5. Continue until you get the screen that asks about the value of all traditional, SEP, and SIMPLE IRAs one December 31.
6. Correct the value.

Please be aware, if you show a star symbol next to line 13 and 18 of Form 8606 then TurboTax is using the Taxable IRA Distribution Worksheet per Pub. 590-B to calculate the amounts and lines 6 to 12 of Form 8606 will be blank.

Please note, to claim a refund, you must file an amended return within 3 years after the date you filed your original return or 2 years after the date you paid the tax, whichever is later. If you filed early, count from the April tax deadline (IRS).

Please see How do I enter a backdoor Roth IRA conversion? for additional information.