dmertz, you are exactly right! It is amazing to me that after complaining about this for years and years TurboTax cannot figure out how to program the generation of an 8606 for an inherited IRA distribution with a tax basis! They collect all the necessary info from the 1099R and even more during the interview, and even ask for the deceased owner's name, which never appears anywhere on the final return -- why do they ask and what do they do with that information?? And the taxable amount I provide is used in their final calculations, so at that point why not just generate the 8606?? This is a major flaw considering the millions of people who have already inherited and will be inheriting IRA's. What's the point of using TT if it doesn't handle this properly? When you get to the end of the return they really push you to file electronically, but with this flaw you can't. The whole point is to avoid having to print and mail your return. I'm just going to file electronically anyway and then after the return is accepted mail the IRS the 8606 with a note describing how TT screwed this up, not me.
