During 2025, I contributed $7,000 in post income tax dollars to a traditional IRA, and immediately converted that account into my existing Roth IRA. I had never made any prior contributions to that traditional IRA. When I upload and go through my 1099-R in turbotax premium and answer each of the prompts, it is adding $7000 to my total taxable income when in reality, the distribution should be excluded due to the fact that it was initially contributed to the traditional IRA with post tax dollars and immediately converted. What am I missing here in the prompts to get turbotax to recognize this? Thank you!
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For context, this is what my 1099-R looks like.
It sounds like you did a "Backdoor Roth" where a non-deductible contribution to a traditional IRA was converted to a Roth IRA. The initial non-deductible contribution is taxable, but to ensure that the Backdoor Roth is being entered correctly, there is a help article at Entering a Backdoor Roth conversion in TurboTax
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