Hi - I have a 1099-R due to recharacterization of my IRA to Roth. When I select the option "I converted all of this money to a Roth IRA" the tax balance goes up. Ideas?

[ferrarellaf]

This despite the fact that Turbotax shows that no tax is payable (and it shouldnt be). The only way to keep the balance same is to choose the rollover option, which isnt accurate. Is there a bug in the software? Thanks!

[fanfare]

a recharacterization is not a conversion; you answered incorrectly.

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recharacterization:

the original amount to the first IRA you report as contribution to the second IRA, earnings move but are ignored.

@ferrarellaf 

[DanaB27]

To confirm, the code in box 7 on your 2023 Form 1099-R is a N or R?

If it is code R then you will have to enter recharacterization on your 2022 tax return in the IRA contribution section.

If it is code N then you will have to enter recharacterization on your 2023 tax return in the IRA contribution section.

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 traditional IRA contribution amount 
6. Answer “Yes” to the recharacterized question on the “Switch from a Traditional To a Roth IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
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.