Although the instructions don't specify this, I believe line 8 is for a situation where you made a taxable ROTH IRA conversion, as opposed to the non-taxable conversion you have with a backdoor IRA. Either way, you multiply box 7 or 8 by the same factor on line 10 so that gives you the correct result on line 13 and the rest of the form.

TurboTax sometimes interprets the instructions a little differently than a literal interpretation would indicate. 

Both Line 7 and Line 8 are Zero/blank on my 8606. And this makes Line 9 is Zero ( which is the sum of 7and 8).  

Line10 requires dividing Line 5 by Line 9. Since my Line 9 is Zero,  Line 10 is Zero now (which is supposed to be 1). 

Line 11 and Line 12 are Zero now because they are the result of multiplying Line7/8 to Line 10.

Line 13 is supposed to be Zero since it's the sum of line 11 and line 12. However, turbo tax gives a $6000 (which is the correct number in actual) with a star mark. The star mark says "from Taxable IRA Distribution Worksheet (per IRS Pub.590-b)

I am running into same issue for Turbo Tax 2021 (premier version).  Was this bug fixed last year (2020)

Please be aware, this is not an error if lines 7 and 8 are empty and line 13 has $6,000 with a star mark. TurboTax is just using the "Taxable IRA Distribution Worksheet" from IRS Pub.590-b to calculate the amount.

@Taxfiller123

@misstree797

@DanaB27 thanks... but part 2 of 8606 form is populated (Line 16 and 17) with $6000 in each line. Shouldn't this be zero when a person makes non deductible IRA contribution ?

No, Lines 16 and 17 of Form 8606 will be filled in the year you make the conversion and enter your 1099-R. If you converted $6,000 then line 16 will have $6,000 and if you had a basis of $6,000 (and your account was empty after the conversion) then line 17 will have $6,000. Therefore, line 18 taxable amount will be $0.

[Edited 3/7/2022 10:39am PST]

@Taxfiller123

@DanaB27  

Hi Dana, thanks for you response. I was strictly talking about contribution in 2021 for 2021 tax year. 

Here are the details:

1. made $6ooo non deductible IRA contribution in 2021 for 2021.

2. converted the non deductible IRA to Roth IRA in 2021. At this point the balance of IRA account is Zero. 

My understanding is that for the above steps, only part 1 of 8606 needs to be filled.  However, my 8606 is populated not only for part 1 but also for part 2 (for line 16 and line 17. Line 18 is zero negating 16 and 17). 

Please let me know if 2021 8606 is populated correctly for my scenario. 

Thanks

Yes, part II lines 16 and 17 are correctly populated in your scenario since you converted $6,000 in 2021 and had a $6,000 basis. Therefore, line 18 (taxable amount) is $0.

@Taxfiller123

@DanaB27  

Hi Dana - Really appreciate your quick response. I have slightly updated my earlier post. Can you please review and share your POV? 

Thanks,

Yes, in this scenario Form 8606 will also have $6,000 as converted on line 16 and your basis $6,000 on line 17.

@Taxfiller123