Per tiutni who said: "I have both a traditional IRA with a basis and an inherited IRA without a basis. The inherited IRA distribution keeps showing up on the Form 8606 for the traditional IRA. This is WRONG"
I was just working on my son's return and got to the IRA section, then checked the 8606 and related forms. He has an inherited IRA which pays out modest taxable distributions. He also does a backdoor Roth, where he makes a non-deductible t-IRA contribution, then converts to Roth. When I checked the 8606, it looked rather funky. Ordinarily, it would show a $6000 contribution and maybe a $6002 conversion, so only $2 would be taxable. For some crazy reason, it looked quite different. Apparently, TT is mistakenly including the inherited IRA distribution as part of the trad-IRA and that mucks up the taxable calculation considerably. So I suspect that is where the error lies.
