"should
I input $5500 contribution to Roth IRA and conversion $5583 to traditional IRA"
No, you recharacterized only $5,500 (resulting in $5,583 being transferred). Indicate that you contributed $5,500 to a Roth IRA, then "switched or recharacterized" $5,500 to a traditional IRA. Enter no other traditional or Roth IRA contributions under Deductions & Credits.
Enter both Forms 1099-R as received. For the code 2 Form 1099-R, indicate that you converted the entire $5,583 to Roth.
There is no penalty (unless you are ineligible to make a $5,500 traditional IRA contribution).
