If I recharacterized $7000 Roth IRA into traditional IRA, do you treat the $7000 like it was never in Roth in the first place? i.e. it's now traditional IRA contribution?

[carpe_diem]

I recharacterized $7000 of 2024 Roth IRA contributions into traditional IRA in Jan 2025. Other TurboTax responses have stated that if you recharacterize Roth funds, then you can treat it as a traditional contribution. However, in the "Tell us how much you contributed" section, it asks to enter total amount you put into a traditional IRA for 2024...but it also states to NOT enter Roth contributions "even if you later recharacterized into a traditional IRA" so I am confused if my $7000 Roth-to-traditional recharacterization counts as an actual traditional IRA contribution.

[DanaB27]

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 ‘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" if you are thinking about doing a backdoor Roth. Otherwise select "No". (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)

You will get a 2025 Form 1099-R  for the recharacterization with code R-Recharacterized IRA contribution made for 2024 and this belongs on the 2024 return. But a Form 1099-R with code R will do nothing to your return. You can only report it as mentioned above. Therefore, you can ignore the Form 1099-R with code R when you get it in 2026. The box 1 on the 1099-R will report the total recharacterized amount (contribution plus earnings) but it does not separately report the earnings and box 2a must be zero.

[fanfare]

If you contributed $7,000 and lost money resulting in a movement of $6,912

your original contribution was $7,000 which is your basis.

@carpe_diem 

The custodian won't convert more than the value of the Traditional IRA.