Backdoor Roth Conversion filing issue
Hi,
In 2024 I made non-deductible Traditional IRA contributions and then converted that Traditional IRA balance to a Roth IRA. So I got a 1099-R for the distribution. I believe I correctly input the 1099-R and follow-up questions into FreeTaxUSA (yes this is a Roth conversion, my 2023 and 2024 year-end Traditional IRA balances are zero, yes I've made non-deductible contributions).
This should be reflected in the (draft) Form 1040 line 4a ("IRA distributions") as the full distribution amount ($7006) and line 4b ("Taxable amount") as, you know, $6 (a tiny amount of interest before the conversion). In past tax years (2023), it was. But this year (2024) FreeTaxUSA is incorrectly filling line 4b with the full distribution, which increases calculated tax owed substantially.
Form 8606 Part I lines 1 (nondeductible contributions), 3 (math), 5 (math), 13 (math), and Part II line 17 (IRA conversion basis) are also incorrect (empty); and line 18 (taxable amount) has the incorrect $7006 value.
Is this a known issue? Is it something I can fix on my end?
Thanks!