You will pay taxes on the $7000 that was left in the Roth
IRA after the recharacterization of $9000.
As you enter the information in TurboTax, pay close
attention to the question regarding the amount for the recharacterization. It is asking for the amount that was left in the Roth IRA ($7000 in your
case), not the amount that was put back into the Traditional IRA.
