Answer “ No” to the recharacterized question on the “ Did You Change Your Mind?” screen.Answer “ No” to “ Is This a Repayment of a Retirement Distribution?”.Click on " Search" on the top right and type “ IRA contributions”.To enter the nondeductible contribution to the traditional IRA: Since you value in the traditional IRA is $0 you won't get a penalty calculated on Form 5329 part III. You will enter the nondeductible traditional IRA contribution but do not enter that you withdrew the excess contribution on the penalty screen otherwise TurboTax won't create Form 8606 and your conversion will be taxable. You will have to request to withdraw the excess contribution plus earnings from your Roth IRA by the due date of your 2021 tax return (including extensions) to avoid the 6% penalty for 2021.
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