2020 Form 8606 Error

[ftcbski]

In 2020 I had a distribution from an inherited IRA (with no tax paid basis) and a distribution from a regular IRA with a tax paid basis which was converted to a Roth.  Form 8606 is calculating a non-taxable portion of each distribution which is incorrect because 100% of the inherited IRA distribution is taxable.  The 2019 version of TT handled this correctly.

[dmertz]

Many people have reported this bug, but it doesn't seem that Intuit is giving any attention to it yet.

@macuser_22 , have you heard any updates on this?  There have been several new mentions of it here today.

[SJGTX]

This bug has been fixed! The issue with the Inherited IRA distributions showing on Form 8606 appears to have been resolved as of 3/5/2021. Make sure you download the updates from 3/4/2021. Recently, there have been related reports on the support forum from many saying they were getting error messages about Form 8606 when trying to file even if they didn't have an Inherited IRA. but I suspect Turbo Tax put a hold on anyone filing an 8606 until they got the Inherited IRA issue resolved. In any event, I was able to e-file successfully and the figures from the Inherited IRA distribution were correctly populated on the return. Whew!

[ftcbski]

Thanks for your update.  I did file last week and it was rejected. Was told to wait for this weeks update. So it does sound like it was fixed. Thanks again for letting me know.