I have wage earners with taxable income at $767K both in a retirement account. Husband is self employed. He was advised to make a $7000 nondeductible IRA . When I place it in the software . The software classified it correctly as nondeductible the basis is calculated and place on form 8606 as $7000. This looks correct. But the refund goes up 37%. If it is nondeductible why is the refund going up?