That $7k gets reported on line 2 of form 8606 as Basis in the IRA and is a Deductible contribution in the year it was made.
GLynch, that's incorrect. A deductible contribution does not get reported on Form 8606 (except for the effect that contribution has on the year-end value in traditional IRAs, reported on line 6). Line 2 is to be the amount from line 14 of your previously filed Form 8606 unless there are adjustments. TurboTax will put the contribution amount on line 1 of Form 8606 if the contribution is not deductible.
Unless you enter an amount directly, the amount on line 2 of Form 8606 comes from line 1 of the IRA Information Worksheet which is generally carried over form line 3 of your previous year's IRA Information Worksheet in TurboTax.
Perhaps you mistakenly included your current-year contribution when 2020 TurboTax asked for your basis in nondeductible traditional IRA contributions made for years prior to 2020.
