This was a known bug with TT and inherited IRAs this year. I am happy to report that this bug appears to have been fixed! I am trying to get the word out by posting this on all the various threads inquiring about Form 8606 and Inherited IRAs. The issue with the Inherited IRA distributions incorrectly showing on Form 8606 appears to have been resolved as of 3/5/2021. Make sure you download the updates from 3/4/2021. Recently, there have been related reports on the support forum from many people saying they were getting error messages about Form 8606 when trying to file even if they didn't have an Inherited IRA. I suspect Turbo Tax put a hold on anyone filing an 8606 until they got the Inherited IRA issue resolved. In any event, I was able to e-file successfully and the figures from the Inherited IRA distribution were correctly populated on the return.
