Fumbled backdoor conversion, two recharacterizations

[wesanderson]

I'm in a bit of an odd situation and I can't figure out how to get TurboTax to do what I want it to do.

Background

1) Made a 6000 contribution to Traditional IRA in 2021 for the intention of backdoor conversion

2) Requested the backdoor conversion - it gets processed as a recharacterization instead

3) While preparing 2021 taxes I realize this has not been processed correctly and recharacterized back to Traditional IRA (before filing)

4) Now working on 2022 taxes and need to get all the numbers to line up

I received a 1099-R with Code N for the first recharacterization to Roth IRA. This was filed with 2021 taxes and I confirmed that I will be removing the amount from the Roth IRA before the filing deadline. This year I received the 1099-R with Code R for the second recharacterization back to Traditional IRA. I'm trying to amend my 2021 return with this new 1099-R to generate a Form 8606 (with the appropriate basis) but I'm not able to get the non-deductible contributions part of the survey to pop up regardless of what combination of answers I provide.

Am I SOL and just need to fill out the form myself? 

[fanfare]

Not sure why it is not working.

Since code R is not working out for you, Stop. To get the basis on Form 8606 forget about the 1099-R with code R. do not enter it.

Tell TurboTax you made a contribution to Traditional IRA. That is what a recharacterization does for you.

then tell Turbotax you want it to be non-deductible. you will get a Form 8606 with the amount on Line 1.

@wesanderson 

[DanaB27 · Accepted solution]

You do not need to enter Form 1099-R with code R into TurboTax it won't do anything to your return.

To get the recharacterization statements and correct Form 8606 please follow these steps:

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select “traditional IRA”
4. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
5. Enter the amount you contributed
6. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
7. 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.
8. For the Roth contribution enter $0 and click continue
9. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
10. 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.
11. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (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)

@wesanderson