Roth IRA - 2020 contribution recharacterized & converted in 2021 + backdoor, 1099R received in 2022

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In 2020, I contributed $6,000 to my Roth IRA. March 2021, I realized my income prevented me from making that contribution to my Roth IRA in 2020, so I recharacterized the $6,000 contribution (which had appreciated to $6,600 by time of recharacterization) as a contribution to a new Traditional IRA (TIRA-2020). On my 2020 tax return, my tax expert at the time filed an 8606 saying I made a nondeductible Traditional IRA contribution of $6,000 but did NOT say that this amount was converted to a Roth IRA.

In March of 2021, I converted TIRA-2020 to my Roth IRA (with the value being converted now $6,900 due to appreciation; backdoor #1). Also in 2021, I contributed $4,000 to a new Traditional IRA (TIRA-2021), which I converted shortly thereafter to my Roth IRA (backdoor #2). In January 2022, I contributed another $2,000 to my TIRA-2021 and converted it to my Roth IRA (backdoor #3).

Now it is 2022 and I've received two1099-R forms:

1099-R #1: Roth IRA distribution for recharacterization to TIRA ($6,600)

1099-R #2: TIRA distribution for backdoor ($6,900 + $4,000)

What is the correct way of accounting for this?

[FangxiaL]

Here is what I understand:

• Your 2020 5498 should show a $6,000 contribution to Traditional IRA with a basis of $6,000; 
• Your 2021 updated 5498 (end of May) form should show a $6,000 contribution to Traditional IRA with a basis of $6,000. 

Follow the two-step process to properly enter your backdoor Roth conversion:

Step 1: Enter the Non-deductible contribution to a Traditional IRA: 

1. Open or continue your return 
2. In the search box, type ira contributions and hit the Enter key, select the Jump to ira contributions link at the top of the search results
3. Select Traditional IRA on the Traditional IRA and Roth IRA screen and Continue
4. Answer No to Is this a Repayment of a Retirement Distribution?
5. On the Tell Us How Much You Contributed screen, enter the amount contributed and continue
   • Enter $2,000 and $4,000 in the two boxes provided for your total 2021 traditional IRA contributions
6. Answer No on the Did You Change Your Mind? screen
7. Answer No on Any Excess IRA Contributions Before 2021?
8. Answer Yes, I made and tracked nondeductible contributions to my IRA
9. Enter $6,000 for Total Basis as of December 31, 2020 on the next screen
10. Answer the questions on the following screens, until you reach Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible, and enter $6,000 in the box. 

Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA

 In the search box, type 1099-r and hit the Enter key, select the Jump to 1099-r link in the search results

1. Answer Yes to Did you get a 1099-R in 2021?, then Continue
   • If you land on Your 1099-R Entries screen, select Add Another 1099-R
2. Select how you want to enter your 1099-R (import or type it in yourself) and follow the instructions
3. Answer None of these apply when you reach the screen Do any of these situations apply to you?
4. Select I converted some or all of it to a Roth IRA on the Tell us if you moved the money through a rollover or conversion screen
5. Next, choose Yes, all of this money was converted to a Roth IRA
6. Continue answering questions until you come to the Your 1099-R Entries screen

To check the results of your backdoor Roth IRA conversion, see your Form 1040:

1. On the left side of your screen, select Tax Tools, then Tools
2. Under Tools Center, select View Tax Summary
3. On the left side of your screen, select Preview my 1040
   • Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a  as IRA distributions
   • The taxable amount should be $900, that is the earnings when you converted to Roth IRA
   • Schedule 1, Line 20 IRA deduction, should be blank
4. Select Back on the left side of your screen to return to where you left off in TurboTax

Entering the recharacterization 1099-R should not do anything to your 2021 taxes. You will have to wait till next year to follow these same steps again to enter the $4,000 Roth conversion you did this year. Your Traditional IRA should have a basis of $2,000 as of December 31, 2021.