I contributed $500 to my Roth before realizing I would be over the income limits, so I recharacterized to a traditional IRA ($490, a slight loss). Then I converted this to Roth ($495). Subsequently, I contributed $5500 to a traditional IRA and then converted to Roth.
I received two forms 1099-R.
The first (recharacterization) shows: a distribution of $490 (Box 1), $0 taxable (Box 2a) and Code N (Box 7)
The second (both conversions) shows: a distribution of $5995 (Box 1), $5995 taxable (Box 2a), Taxable amount not determined (Box 2b), and Code 02 (Box 7)
I think I entered this all correctly into Turbotax. The 1040 shows IRA distributions of $6485 (4a) and taxable amount of $0 (4b). It seems like it is double-counting the recharacterization... Should 4a show $5995 only? Or is this correct? Thanks!