TurboTax says I owe income tax for my backdoor Roth even though I used taxed earned income for the contribution

In 2024, I contributed $7000 to my traditional IRA and then I did a backdoor Roth conversion my Roth IRA. Both accounts are in Fidelity. The $7000 that I contributed were after-tax dollars, so this should be a non-taxable event. 

 

I received a 1099-R from Fidelity for the Traditional IRA account, which shows a gross distribution of $7000 (box 1) and taxable amount of $7000 (box 2a). When I go through the steps of entering everything in TurboTax, it comes out that the $7000 is being included in my taxable income, and it shows I owe taxes on it. 

 

Is this an issue with how I'm entering it in TurboTax or is this an issue with the 1099-R classification from Fidelity?