My tax returns for 2020 were rejected because of a possible problem with an inherited IRA. I don't have an inherited IRA, just a regular IRA. I didn't take all my RMD because of the waiver included in the CARES Act..

[JotikaT2]

You may need to review your entries in the 1099-R Retirement section to confirm your input.

The input would be under the Federal income section as follows: 

1. Select Income & Expenses 
2. Scroll down to All Income 
3. Select show more to the right of Retirement Plans & Social Security 
4. Select start/revisit to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R) 
5. As you review your 1099-R information, be sure to check the distribution code as entered on your 1099-R form in box 7. 

The program will then answer any questions as it relates to the input for that particular 1099-R.  Be sure to answer the questions on the screens after the 1099-R input section to ensure you have answered all of those questions correctly as well.  

[dmertz]

Apparently all tax returns that include Forms 8606 Part I reporting distributions are being intercepted because it can't be determined from the e-filing whether the form is being affected by a bug related to distributions from an inherited IRA or not.  Try filing again after March 5.

[charlie43]

 Problem 1:  I do have an inherited IRA.  But Turbotax did not calculate a tax due on the RMD amount taken, but instead reduced our basis on regular IRAs.  It did submit a Form 8606 with the reduced basis which I think is in error.  Problem 2:  I took a partial RMD this year as a QCD from a regular IRA.  Turbotax correctly did not include this in taxable income, but incorrectly (I think) reduced basis in an regular IRA on the IRA worksheet that it should not have.  Our return was rejected with problems with the inherited IRA.  When I enter Turbotax to fixed these errors the program still says to wait for March 5 updates.  It is now March 11 and the response has not changed.  When should I expect to be able to complete my return. Thanks.

[DaveF1006]

It depends. It should be updated now. 

1. Go to federal>wages and income>all income 
2. Retirement plans and Social Security>show more
3. Ira (401K), pension plan Withdrawals(1099R) Revisit
4. Now you should see a summary screen.
5. Be sure your Turbo Tax program is updated if using the software. If using Turbo Tax Online, the program should be updated. 
6. As you enter, here will follow-up questions.  Be sure to say no when it asks if you inherited the IRA from the payer.
7. Also if you are using the software, you may need to go to forms and manually adjust the 8606 amounts that accurately reflects the basis that should appear.
8. Note: If you reported a QCD from an RMD, but could reduce basis if there were non-deductible contributions made to the account.