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Form 8606 is a form to report nondeductible IRAs and other IRA-related transactions that the government needs to track. Examples include:
If you feel that the form does not apply to your situation, you can delete it from your return, using these steps:
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"Distributions from a Roth IRA (especially to calculate the taxable amount of a nonqualified Roth IRA distribution.)"
More accurately, the only Roth IRA distributions reported on Form 8606 are nonqualified Roth IRA distributions and qualified first-time homebuyer distributions. Regular qualified Roth IRA distributions are never reported on Form 8606.
In this case you apparently have received a nonqualified distribution required to be reported on Form 8606 Part III to determine the taxable amount, even if the taxable amount ends up being zero.
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