Hello, I need a help.
I'm working on 2024 tax report and got stumbled on IRA deduction section.
I'm getting deductible IRA of $3420 even though all my contributions should be non-deductible IRA.
I used to exceed MAGI and had to do backdoor Roth conversion, so my broker had set up my wife's account to do Roth conversion right after contribution is made to Traditional IRA in order to avoid tax consequences.
She contributed total of $9508 reported in 2024 1099-R.
Among the total, $1508 was the total basis for 2023, which was reported in 2023 8606.
She contributed $8000 by 2024/12/31 (She is 50yrs) and all the contributions are immediately converted to Roth, so Traditional IRA balance at 2024/12/31 is $0.
Yet, Turbotax reports I have $3420 IRA deduction.
I don't know what I did wrong or where $3420 came from....
Please help....
