Ok thanks, I think I got it. Let me try to summarize.
If I well understand, entering first the Roth contribution is a necessary step in TurboTax to let the software detect the recharacterization and offer to add a statement for the explanation.
In reality, in the final forms that are being filled for the 2016 tax return, there will be no mention of the Roth Contribution and it would be like I had manually entered 2 things:
1) $3,600 on Form 1040 Line 32 as a traditional IRA deduction as if I originally made the contribution to the traditional IRA
+
2) a Statement explaining there was a recharacterization
In my case, there will be no Form 8606 on my 2016 tax return because the entire contribution was deductible.
Correct?
As for next year, I will receive a 1099-R from my IRA custodian because I performed the recharacterization in 2017.
I can enter it when filling my 2017 tax return but it won't have any impact because it will have the code "R" in box 7.
Also, I won't have to amend the 2016 tax return at that point because I already reported the recharacterization thanks to the statement explaining it when filling my 2016 tax return this year.
Correct?
Hopefully I got this right this time. Let me know. Thanks a lot.
