E-File rejected due to FED_Taxable_Inherited_IRA but I don't even have one

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

Turbotax says "There is a potential issue with the calculation of your Taxable Inherited IRA. We are reviewing updates to Taxable Inherited IRA calculations. We expect to have these updates done by March 5th, 2021."

OK .. but I don't even have an inherited IRA. I did have a Roth conversion, and I've reviewed forms 1099-R and 8606 and all looks fine. I searched the entire return and found no entries made for any inherited IRA.

[SusanP]

I have the same issues .... no conversions ... only withdrawal same as prior years.

[vjp62]

My wife and I got this exact error message last night after filing our federal and state returns using TurboTax.

Neither of us have an inherited IRA, and we only withdrew from her IRA last year.

If anyone at Intuit can provide some more clarity, via an email communication, it would be helpful.  At the moment it seems somewhat ambiguous about what we need to do.   Why are we being given the option to re-file, for instance, if the problem lies with TT and not with our return?

[Bob1959]

I submitted my e-file yesterday and received the same rejection. I have not done any Roth Conversions and have no Inherited IRAs. I only have normal distribution withdraws from my IRAs, which I did and reported last year on TurboTax without a rejection. Any help is appreciated?????

Thanks.

[cammj]

Same here! Turbotax is really slipping! We've used it for years with good results but not for our 2020 return. We got the same message:

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

We have no inherited IRA nor did we claim one on our return. When I clicked the link in the TT email  I got a message that their calculations would be updated by March 5. So now there is nothing to be done but wait I guess.

Thanks a lot, TurboTax!

[RobertMaxB]

FYI- this is a duplicate thread.  Longer discussion/more of us with same problem at:

https://ttlc.intuit.com/community/taxes/discussion/my-return-was-rejected-due-to-fed-taxable-inherit...

[RobertMaxB]

Update: Some people with this error are now getting returns accepted (including me), we are discussing on main thread. Turbotax update on 3/4 seems to have fixed it (for many, not sure if 100% fixed).

[Bobz999]

We have an issue with IRS rejecting our TT submission for inherited IRA issues.  We don't have any inherited IRA. I've checked all the pages of the pdf of our return and there is no indication that an inherited ira was included in our submission. We did have rollovers and we did have roth conversions, but no inherited iras.

[MichelleLO]

Have you successfully e-filed your return now? The issue was resolved in the March 4 update. 

@Bobz999

[Bobz999]

E-filed again today (3/10) and IRS accepted submission this time.

[ReneeM7122]

The error has to do with a software issue on Form 8606 which has been fixed. 

For those who may still need to fix the problem on your tax return, please update TurboTax if you are using a desktop version.  Then delete your 1099-R forms and reenter them.  Once you go through the final review, it should work.  1099-R information, final review and refiled again. It was accepted by IRS.

Here is a TurboTax article about inherited property.

@Bobz999

@MichelleLO

@RobertMaxB

[Bob1959]

Refiled my tax forms and everything worked great following the software upgrade. Thanks TT