@phat7734 - A recharactorized contribution and recharacterized conversion are totally different things.
You should have received and reported a 1099-R for the distribution and reported the total box 1 amount on line 15a the amount actually converted in line 15b and an attached explanation statement about the recharacterization (assuming no basis in the IRA).
You did not provide any detail as to how you reported this.
If you reported it incorrectly then answer (or call the IRS number in the letter) to dispute the tax. Your Schwab statements should be your proof that shows the actual amount converted.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
