Line 1 of 8606 empty

Question

I made $7000 non-deductible contributions to my traditional IRA account for year 2024 and $6500 for year 2023. The 2023 contribution was done in 2024 before April 15. The immediately I converted all of it to Roth IRA. Because both contributions and conversion were made in 2024, I got a 1099-R form from my bank with the gross income of 13502 (2 dollars should be the interest earned in the meantime).

After I filled out 1099-R and answered the follow up questions, I see the generated 8606 form has the following

* Line 1: empty
* Line 2: 6500
* Line 3: 6500

Because of this, the taxable income becomes $7002, which is wrong as that $7000 that I contributed is after-tax money.

I can't figure out how to make freetaxusa put the correct $7000 for line 1. Any idea how to fix this?

protossor · Answer

Ah actually looks like changing the following answer fixed it

* Enter any 2024 traditional IRA contributions you withdrew:

$7000 → 0

protossor · Answer

Any idea how to make progress on this? Or is this a bug of FreeTaxUSA?

protossor · Answer

Thanks Dave! On my W2 I indeed have Box 13 Retirement Plan checked. And my income is also above the threshold for being able to deduct an IRA contribution.