Need help documenting return of direct Roth IRA contribution followed by backdoor Roth IRA contribution

[sfoksn]

Good morning, first of all thank you for reading my question and helping me.

Here is the detail of the situation -
 
1. My wife directly contributed $6000 to Roth IRA in early 2019 when she was not yet married to me and expected to qualify for direct contribution.

2. When we got married and was going to file jointly, she realized that she was not going to qualify for Roth contribution anymore, so in 3/2020, we asked for a return of $5767.32 (we had a loss of $233 due to COVID crisis at that time on her $6000 contribution).

3. She subsequently contributed $12000 to her Traditional IRA in 4/2020, $6000 for 2019 year, $6000 for 2020 year, then converted full $12000 amount (no loss/gain) into Roth IRA to complete backdoor Roth contribution for both 2019 and 2020 year.

5. In 4/2020, I have also contributed $6000 into Traditional IRA and converted the full amount to Roth IRA for my backdoor Roth contribution for 2020.

My wife received two 1099-R from the brokerage for 2020:
1099-R regarding her Roth IRA showed Gross distribution of 5767.32 with Distribution code "J," 1099-R regarding her Traditional IRA showed Gross distribution of 12000 with Distribution code "2."

Now, on TurboTax, I have finished entering in my situation and just need to verify that everything looks correct as I have never had to deal with return of Roth contribution before.

On TurboTax Tax Summary - when I preview my 1040 form:
On 1040 Line 4a "IRA distributions" - it shows 23767
On Line 4b, it says "Rollover" with "0" for taxable amounts.

I believe 23767 is from 6000 from my 2020 non deductible Traditional IRA contribution which was converted to complete backdoor Roth, and 12000 for my wife's backdoor Roth for year 2019 and 2020 which were both completed in 4/2020, and the return of 5767 from 2019 direct Roth contribution that she received in 3/2020 because she didn't qualify for it anymore.

Does this seem right?  Please let me know if there is a better area for me to check to ensure this was done correctly.

I really appreciate your input.

[DanaB27]

Please be aware, that money moved from a traditional IRA to a Roth IRA is a conversion and not a rollover.

Please make sure you entered the backdoor contribution like this:

To enter your nondeductible contribution to the traditional IRA, this will create Form 8606 (for your wife you will have to enter this on the 2019 and 2020 tax return) :

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 “No” to the recharacterized question on the “Did You Change Your Mind?” screen
7. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contributions before this tax year.
8. If you had a basis in the Traditional IRA before then enter the amount.
9. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

To enter the 1099-R distribution/conversion: 

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
5. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
6. On the "Your 1099-R Entries" screen click "Add another 1099-R" repeat steps 4-5. 
7. Add the last 1099-R  
8. After entering all 1099-Rs on the "Your 1099-R Entries" screen click "continue"
9. Answer "yes" to "Any nondeductible Contribution to your IRA?"
10. Answer the questions about the basis and value