I did recharatcerization from Roth IRA to Traditional IRA. The original contribution is $3200; recharacterization amount is $3585. Once it is in traditional IRA, I recharacterized to Roth. I also did another $2800 from Traditional IRA to Roth IRA. I followed steps in turbox to file nondeductible contributions but 8606 form is not generated correctly. Please help me fix it.
Steps I did in turbotax
1. select Traditional IRA and Roth IRA
Traditional IRA
2.Repayment -> No
3.Total 2020 Traditional IRA contribution -> $2800, 0 contribution for 2020 in 2021
4.Tell Us How much of $2800 transferred -> 2800 (But actually I transferred $6385 in total. But if I put $6385, 8606 is not generated)
5. Excess contribution before 2020 -> No
6. Any Non-Deductible Contributions to Roth IRA -> Yes
7. Total Basis as of Dec 31, 2019 -> 0
Roth IRA Contribution
1. Roth Contribution -> $3200
2. Amount switched from Roth IRA to Traditional IRA ->$3585
3.Did you open account before 2020 -> Yes
Now 8606 form
line 1 $3585
line 2 0
line 3 $3585
line 14 $3585
I tried it all night, still not sure how to fix it
You made a couple of errors here.
"Roth IRA Contribution
1. Roth Contribution -> $3200"
That's wrong, there is no Roth contribution going on here.
even though it grew to 3,585,
you contributed 3,200 to a traditional IRA and you indicate that it should be non-deductible contribution.
"I also did another $2800 from Traditional IRA to Roth IRA."
if you had a balance in Traditional IRA(s) when you started this exercise, some or all of your conversion will be taxable.
That depends on the Form 8606 from prior years.
Finally enter the 1099-R 6,385 and state that you converted it all.