There is a potential issue with the calculation of your Taxable Inherited IRA.

[Grass]

I got the same issue. It's really frustrated! I have to pay penalty, and I don't want to wait until March 5th. 

The customer support line is very busy, no body responds me after I've been waiting more than 30 mints over the phone. 

[marwan3e]

same issue here , did chat with one of the CPAs online - they think I am missing a box that i didnt fill, but it doesnt look like it is the case - I reviewed everything and things look ok at least to me.

please update guys if anyone finds a solution , I have a backdoor roth as well and no inherited IRA.

[renam13]

I also received the dreaded "potential issue with the Calculation of your Taxable Inherited IRA" message.  I only had a distribution from a tradition IRA that is not inherited....nothing else... and still Turbotax screwed it up.  It is so frustrating.  I called the help line, but they were not helpful at all other than to admit my forms were filled out correctly.  She suggested that I refile immediately; however, I responded that I thought it would be prudent to wait until Turbotax fixes the software.

[fvargas]

Same here - backdoor Roths. TurboTax has had SOOO many glitches this year. I used to love them, but they have made this process anything but easy this year. TurboTax, please reply letting us know when the glitch will be fixed. The 1800 number is not very helpful. 

[nothingnewzz]

I got exactly same issue. NO inherited IRA but DID backdoor Roth IRA!! Got so many issues with Turbotax this year. REALLY FRUSTRATED....

[pirateforhire]

So I just got off the phone with someone from TurboTax about my own return with this issue. A few things I thought I'd share:

If you currently owe money and had set up the IRS payment through TurboTax, they will not make that payment until you re-file and the return is accepted. 

We will still be able to e-file and are not going to have to mail in paper returns (someone on a related thread had said such. Not true). 

We will also not be charged a second time to re-file as long as we don't do anything stupid that starts the process over (additional charges is more misinformation I've seen in these threads). 

They seem to be aware of the form issue (as indicated by the March 5th form update mentioned online), but the agent told me it may be prudent to wait an extra day (until the 6th) to make sure you are using the new software and nothing is cached (for those of us using the online system). 

[wa0jpy123]

Same issue here. I am considering going to a different tax product even after using turbotax for over 20 years. Intuit needs to make sure their product works before selling to customers!!

[fvargas]

@wa0jpy123 Unfortunately, me too. I love their "explain why" feature and how it is done like an interview, but the glitches this year are out of control. If they don't have it fixed close to the date they mentioned, 03/05/21, I might just re-file it all with another product (wow, that sounds fun). Does anyone know if that will mess anything up? From what I have read, it is "rejected" by TurboTax, not the government, so I wouldn't think it should mess up...

[joanbdunham]

We got the same rejected message. Thanks for this explanation. We will wait until next week to try again.

[AreWeThereYet]

Having the same issue:

https://ttlc.intuit.com/community/taxes/discussion/re-return-rejected-for-potential-issue-with-the-c...

[jianglai]

Really? We can't even get someone from TurboTax to officially comment? This year's bug has been crazy. I've encountered delayed filing because of underpayment penalty calculation not ready, failing to charge for state tax filing and now this. It'll soon be a month since tax filing opens. TurboTax really needs step up.

[CarissaM]

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? 

[dmertz]

Today's update (R20) fixes the bug that was the reason for which that Intuit chose to block filing tax returns that included a Form 8606.  This fix should allow the filing restriction to be lifted, but it's not known yet if it actually has been lifted.  An affected individual will need to try e-filing their tax return again to see if it now goes through.

[kfs1967]

Me Too.  I do have an inherited IRA but this year no distribution was required and I receive no 1099R. Seems Q is projecting a distribution requirement and I didn't take one. Quicken says they'll fix the problem by tomorrow. We'll see.

[macuser_22]

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@kfs1967 wrote:

Me Too.  I do have an inherited IRA but this year no distribution was required and I receive no 1099R. Seems Q is projecting a distribution requirement and I didn't take one. Quicken says they'll fix the problem by tomorrow. We'll see.

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Quicken and TurboTax are not connected - separate companies.