Ok, looks like I finally solved this. For this section "Let's Find Your IRA Basis" and the field "Total Basis as of December 31, 2017", I have put 5500. This removes the additional tax. But the problem is I didn't file a Form 8606 last year. Can this be a problem? I didn't use Turbo tax last year for filing as I was a non-resident for tax purposes.
