I wanted to report a glitch found when entering a Required Minimum Distribution from an Inherited IRA (non-spouse). I am using the 2020 Deluxe CD/Download version. I am absolutely certain the information was entered correctly from the 1099-R as an inherited IRA with no basis (no non-deductible contributions). I also had a Roth Conversion from a Traditional IRA that is showing correctly on the 8606. However, the distribution from the Inherited IRA is showing on Line 7 of the 8606, and Line 12 shows part of the cost basis from my personal Traditional IRA was used to offset the tax on the Inherited IRA . I have done this for many years and I know that an inherited IRA distribution is not supposed to be reported on Form 8606 - that is for one's own Traditional IRA basis calculation. If I manually override the entry on the form or the worksheet, there is a red exclamation mark, so I will not be able to file electronically with that supposed "error." I would like to get this fixed! I tracked the error all the way back to the Form 1099-R Summary worksheet. On that worksheet, an Inherited IRA distribution should appear on line 1c (to be deducted out), and the taxable amount should appear on Line 7. These entries are blank, unlike previous years when the Inherited IRA distribution/taxable amount is shown in these boxes correctly. Instead, the Inherited IRA distribution is showing on Line 5 (where it is not supposed to be) and it is getting erroneously carried over to the 8606. I spent a couple of hours to several agents at TT and they were not able to identify why this is occurring, and they confirmed that it is not a user error, i.e. all my entries are correct. They will report it, but it may not get fixed before tax season from what I was told. If anyone else is noting this glitch, please report it! By the way, I try deleting and re-entering all my 1099-R entries, and the same error occurs. It is definitely a glitch in the TT software that is not carrying the Inherited IRA distribution over to the 1099-R Summary worksheet correctly. Any other suggestions other than to make the corrections and mail in my tax return?
