8606 Line 1: does earnings in recharacterizations count toward basis?

[dhuynh44]

Hi all,

Quick question.  Trying to understand this situation please.

$1237 recharacterized from Roth to Traditional in 2020 for $1000 contributed in 2020

$1317 recharacterized from Roth to Traditional in 2021 for $1000 contributed in 2020

Would Line 1 of Form 8606 be $2000, or $2554?  When the question under "Deductions and Credits":

             "Enter Your Roth IRA Contributions": $2000

             "Tell Us How Much You Transferred": $2554 ($237 + $317 earnings)

It populated Line 1 on 8606 as $2554.  Would this be correct even though I actually only contributed $2000 nondeductible?

Recharacterizing an amount from Roth to Traditional ADDS to your nondeductible contribution to Traditional correct?

Thank you!!!