Yes, the amount from box 1 of a code N Form 1099-R will be included on Form 1040 line 15a but will not be included on line 15b. This is proper.
For some reason, TurboTax does not similarly include a code R Form 1099-R on line 15a, so if the recharacterization of your 2016 contribution occurred in 2017 and you entered a code R 2017 Form 1099-R into 2016 TurboTax, or you simply provided explanation of the recharacterization without entering any code N or code R Form 1099-R into 2016 TurboTax, TurboTax would not include the recharacterization on line 15a of your 2016 Form 1040. As long as your filed 2016 tax return reflects the correct traditional IRA deduction on Form 1040 line 32 or nondeductible traditional IRA contribution on Form 8606 line 1, you have no need to amend your 2016 tax return.
