Can I add a statement of explanation to the IRS on my Federal tax return on TurboTax before filing? I have been advised to do so. How do I do that?

You will have the option to create the statement when you enter the recharacterization (step 8):

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”  (if you made the contribution to the traditional IRA and recharacterized to a Roth IRA, then select "Traditional IRA")
5. Answer “No” to “Is This a Repayment of a Retirement Distribution
6. Enter the contribution amount 
7. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
8. 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.

Thanks for your help. It’s much appreciated.