Need Help with 1099-R

[TomDx]

In 2024 I mistakenly put $2000 in a Roth while trying to do a backdoor Roth (I'm not eligible to make a direct contribution) .  By the time I noticed my mistake, that $2000 grew to $2309.28.  In that same year (2024), I had the $2309.28 recharacterized to a Traditional IRA, and then I did a Roth conversion.   Of the converted amount, $2000 is post tax money and $309.28 is investment income. 

When I enter the 1099-R in TurboTax, I'm never given me the option to declare a conversion, and form 8606 is never created.  On the 1040 where I want line 4a to be $2000 and 4b to be $309.28,  TurboTax puts $2309.28 in 4a and $0.00 in 4b. 

My Traditional IRA is and always has been $0.00 on 12/31 of each Tax year.

I'm at a loss as what to do and would appreciate some help in getting this right.

Thanks

[fanfare]

recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but that is ignored.
You must use a trustee-to-trustee transfer before the due date April 15,2025 ( or Oct 15, 2025 if 1040 was timely filed or extended).
You will instruct trustee to calculate the allocable earnings.

report this on your tax return for the year during which the contribution was made.
Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.
----
Upon reporting a Trad IRA contribution (non-deductible) of the original amount on your tax return, you can then also report a Roth conversion of the contributed amount for net tax of zero, unless your IRA previously had value exceeding basis.

In that case, it can't be done tax free.

to report a non-deductible contribution, Form 8606 must be attached.

@TomDx 

In your case the extra earnings also converted will be taxable.

If you follow the IRS process above, you can toss the 1099-R showing recharacterization into the circular file.

If you enter it you will have to explain to TurboTax what you did.

[TomDx]

I guess this is not as simple as I hoped.

I did file an extension. 

What is a trustee to trustee transfer?

A bit more info... 1 of the 1099's is a recharacterization from a Roth of 2,309.28 (earnings 309.28), the other is for a properly done backdoor Roth for 6,298.87 (earnings 298.87).  If I enter the 2nd one, it works fine... form  8606 is created and I'm taxed on 298.87.  As soon as I enter the 1st one, form 8606 disappears and Turbotax wants to charge me tax on 8,608.15.

Thanks for you time and response.

[fanfare]

your initial situation is quite simple.

you didn't state you recharacterized one amount but converted a much larger amount.

trustee-to-trustee means you went through the custodian who calculated the earnings.

you can't resolve an excess without the custodian's help. you did that part.

--

" recharacterization from a Roth of 2,309.28 (earnings 309.28),"

This is now a traditional IRA contribution of $2,000. include that amount in your contributions for the year.

As I said above, don't enter that first 1099-R because you are not answering the followup correctly and it is not necessary.

Your Form 8606 basis is going to determine the non-taxable part of your conversion.

@TomDx