Federal return rejected "potential issue with calculation of your taxable inherited IRA" message as rejection comme t

[Bjackie1]

yes it was rejected because i could not put the right numbers in and because they did not take for fed so now what do i do because all they took was for state and it was the amount of 745.30+6.75  one is state wages and the smaller one is for the state  income

[Bjackie1]

but that also stops me from getting my stimulus because now i am not working 

[Bjackie1]

yeah so can i get $20 of my money back on my card i can sure use it

[ChondelLO]

@cf1213 The error you are experiencing is connected with entries on Form 8606. Please see this link to sign up for updates related to this issue: Why Am I Getting a "Check This Entry" Error Related to For 8606?

[sg2658]

I am also waiting for the March 5th update to clear up the problem with the rejected federal return because of TT's glitch with the 8606.  Would I be able to just print and mail my return after having received a rejection notice from e-filing or would you suggest it would be better to wait and e-file again.  Is the return "marked" as rejected at IRS?   There is no correction needed in my case - there is no inherited IRA and I answered this question correctly when filing - I think the federal return is ok to mail but didn't want to create more problems for myself if it would be better to wait and e-file again?   Would appreciate any thoughts on this.

[macuser_22]

Today's update (r20) seems to have fixed that issue.

[Jinny2]

It is not fixed.  I tried e-filing again and it was rejected again.

[DawnC]

If you are using the desktop software, please make sure your software has been updated.   And, what was today's rejection code?    @Jinny2

Do not file by mail unless you absolutely have to as the processing will be delayed.  And due to covid, it will be even more delayed.   If you must mail the return, you can change your filing option in TurboTax from ''e-file'' to ''file by mail''.   And no, the return would not be marked as ''previously rejected''.   I would definitely wait to e-file if I were you, however.   @sg2658

In TurboTax, some customers are getting the following error in review:

Check This Entry: "Form 8606 : Your calculations could not be completed. Ref code:X-XXX-XXX  - - We’re currently working to resolve this issue. If you’d like to receive progress status updates, please sign up using the link at the bottom of this article.  

[Spikey609]

They are doing an update tomorrow that hopefully resolves our problems

[macuser_22]

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@Jinny2 wrote:

It is not fixed.  I tried e-filing again and it was rejected again.

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There were two related issues:

1) The bug that put incorrect information on the 8606 form -  that the 3/4 update fixed,

2) The block put on returns with a 8606 form.   I don't know if that was a TurboTax block or the IRS blocked it but evidently the block has not been lifted.

[sgjohn]

My return was rejected as stated, "FED_Taxable_Inherited_IRA - There is a potential issue with the calculation of your Taxable Inherited IRA."

I do not own an inherited IRA.  I checked for updates and received the message that my software was up to date. I reviewed my return and verified that I had checked that my IRA was not an inherited IRA

I have refiled using efile. Now I will wait and see. TT needs to solve this problem with the large number of customers with traditional IRA this is going to be a problem.

[macuser_22]

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@sgjohn wrote:

My return was rejected as stated, "FED_Taxable_Inherited_IRA - There is a potential issue with the calculation of your Taxable Inherited IRA."

I do not own an inherited IRA.  I checked for updates and received the message that my software was up to date. I reviewed my return and verified that I had checked that my IRA was not an inherited IRA

I have refiled using efile. Now I will wait and see. TT needs to solve this problem with the large number of customers with traditional IRA this is going to be a problem.

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The problem was an error on the 8606 for that was resolved with release r20 today.

The block on the returns is a separate issue and I do  not know if TurboTax is blocking or the IRS is but it seem that the block has not been lifted yet even thought the reason for the block is resolved.

[dmhttr16]

How are we supposed to know that the software was fixed, as expected (by March 5, 2021)?  What, if anything, needs to be done before refiling?  This needs to be fully explained by Intuit for those with returns that were rejected.  (Intuit should have withheld submitting the filing, when they knew there was a problem.  Instead, Intuit collected their fee, and left us hanging, when the returns were rejected.)

[dmhttr16]

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?

[macuser_22]

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@dmhttr16 wrote:

How are we supposed to know that the software was fixed, as expected (by March 5, 2021)?  What, if anything, needs to be done before refiling?  This needs to be fully explained by Intuit for those with returns that were rejected.  (Intuit should have withheld submitting the filing, when they knew there was a problem.  Instead, Intuit collected their fee, and left us hanging, when the returns were rejected.)

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Just resubmit the tax return.  Nothing else needs to be done.  The actual bug only affected taxpayers that actually had both an inherited IRA AND required a 8606 form.   The inherited IRA was incorrectly added to the 8606 that changed the taxable amount.    The update corrected that and removed the incorrect entry.

TurboTax temporary blocked ALL returns with a 8606 until it could be investigated, but as it turns out, only taxpayers that had both a 8606 AND an inherited IRA that met certain conditions were actually affected.