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@dmhttr16 wrote:
Tried to find out about the most recent updates concerning the problem with "Taxable Inherited IRA Calculations" by clinking the link in your comments, but was informed by a big red bar that access was denied. So how do you find out if the problem has been resolved, and what to do next?
If you are using the desktop software you need to update to release r20 (the current update). Online versions were automatically updated by TurboTax.
I filed Federal and State returns on Wednesday, 3/3/2021. That evening I received a message that the Federal return was rejected with the cause: "There is a potential issue with the calculation of your Taxable inherited IRA" which was confusing, since I had not reported an inherited IRA. I also received a message that my state (KY) return was rejected because the federal return was rejected. On Thursday, 3/4/2021, I installed an update which had not been available the day before. I believe that update fixed the problem that erroneously reported an Inherited IRA. After going over all of my entries and making no changes I refiled today 3/6/2021 and my federal return was accepted. I have just filed my state return and have received a message that it is pending.
I filed my return last night, the update worked
The 3/4 update correct that issue.
State will ALWAYS reject if Federal rejects. State cannot be e-filed until the Fed accepts.
"State will ALWAYS reject if Federal rejects. State cannot be e-filed until the Fed accepts."
Interesting twist...On Feb 26, I filed Fed and State (CA) simultaneously. Fed was immediately rejected due to TT's false "Inherited IRA" problem. A couple days later (on March 2), CA rejected my return but stated a different reason (a bad entry on CA Form 593), with no mention of the rejected Fed return. So CA at least reviewed my State return, even though they must have known the Fed return had been rejected. Anyway, I fixed my Form 593 error and, with no other changes, refiled both on March 5, and both were accepted within the hour.
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