Unfortunately, I tried that twice. After going back through that section, it always comes back at $4580 and $2420 on lines 12 & 13. During the process, TT does inform me that I am only eligible for a $4580 deduction and asks me how much of the $7000 I want to make non-deductible. I enter $7000, and on the worksheet it shows $7000 as non-deductible, but TT always fills in line 12 & 13 incorrectly and then gives me an error when reviewing (which won't let me e-file the return).
If Form 8606 shows $7000 on Line 1, it doesn't matter what your worksheet says.
Schedule 1 Line 20 should be zero.
Otherwise, contact TurboTax Support.
OR
Use override and file a paper tax return.