How to explain recharacterization from Roth IRA to traditional IRA

Yes, it seems you had a loss of $944. But this won't get reported, you only enter it on the explanation statement.

You will enter the recharacterization when you enter the contribution to the Roth IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution
6. Enter the Roth contribution amount of $6,000
7. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount of $6,000 (no earnings or losses)
8. TurboTax will ask for an explanation statement where it should be stated that the original $6,000 minus $944 loss were recharacterized.
9. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you are thinking about doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)

what is the code in box 7 1099-R for this ?

@acc182 

@fanfare 

The code for box 7 is N and there is no check mark in the IRA/SEP/SIMPLE.

I'm in a similar situation. After recharacterizing the excess 6K Roth contribution (over MAGI limits) to a traditional IRA, I then did a backdoor Roth conversion.  The steps above show how to outline the recharacterization, but what do I fill out for my traditional IRA contributions?  Is it 0 because technically I only contributed to my Roth IRA which was then recharacterized - or is it 6k?

Trying to avoid double counting contributions.  Thanks. 

Yes, you will only enter the Roth contribution and recharacterization with the steps mentioned below and not a traditional IRA contribution (unless you made additional direct traditional IRA contributions but this doesn't seem the case in your situation).

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer ‘Yes” on the “Roth IRA Contribution” screen
6. Answer “No” to “Is This a Repayment of a Retirement Distribution
7. Enter the Roth contribution amount 
8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
9. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
10. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (since you are doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)

@bcole804