Going in to 2024, you had a basis of $12,000 in your Traditional IRA, along with $400 of earnings. You have since added $7,000 to the basis and already converted that to a Roth IRA. The $7,000 non-deductible Traditional IRA contribution will be reported on your 2024 tax return (unless you made the contribution for 2023 and reported it on your 2023 return).
You will receive one Form 1099-R for 2024 to show the distribution(s) made from the Traditional IRA which was subsequently converted to a Roth IRA. There will be only one Form 1099-R that will either show $7,000 or possibly $19,400 (if you decide to convert the $12,400 also). Out of that $19,400, $19,000 will be basis in the Traditional IRA and will not be taxed. The $400 of earnings will be taxable on your return.
When doing your 2024 return, Form 8606 should show a basis of $19,000 which would leave only the earnings portion taxable. The earnings can be converted to a Roth along with the non-deductible contributions. The earnings are taxable when converted; the non-deductible contributions are not. After all has been converted, your basis will be zero until another non-deductible contribution is made in the future.
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