Thank you for you feedback. It clarifies everything.
I hope they update the Turbotax documentation page with the following useful information which help people avoid confusion. >>
If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and you will not get the “Choose Not to Deduct IRA Contributions” screen. At the end of the IRA contribution interview you should see a screen saying $0 is deductible.
