Basis with Backdoor IRA Conversion

In 2024, I contributed $7K to a traditional IRA and bought an mutual fund. The mutual fund went down in value to $6,929. I then converted the full amount in my traditional IRA, $6,929, to my roth IRA, prior to Dec 31 2024.. My traditional IRA had $0 thereafter.
My question is — FreeTaxUSA is reporting basis on the 8606. Is that correct, even though my traditional IRA accout was completed converted?
Thank you!
Answers
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Hello,
So the software may be showing a basis at first, since you contributed to a Traditional IRA (and I assume you didn’t qualify for the IRA deduction), but it should be reduced by the amount you converted to a Roth IRA.
I would recommend that you contact customer support about this. It is hard without seeing your account to tell why you are still showing a basis. Customer Support will be able to view your specific entries and figure out what is going on and why.
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