My return was rejected due to FED_Taxable_Inherited_IRA but I did not inherit an IRA.

[dpillai27]

Same here. Will wait until the 5th i guess.

[aonorato35]

Same problem.  Spoke with Turbo tax rep.  She got on to account with me and talked about deleting a form but could not do it.  She then proceeded to blame IRS saying they have to update software and i should wait until 6 March before refilling.  So guess I will wait.  Very frustrating and stressful since I have a substantial refund coming.  Turbo tax should send put something out apprising clients as to what to do.

[NCC2]

My return was also rejected by the IRS for the bogus inherited IRA problem. I converted a traditional IRA to a Roth and the traditional IRA was a mix of non-deductible and deductible.

Obviously this is a TurboTax problem. Filing this them, this year, has been horrendous. Problem after problem. 

[Click]

> TurboTax is aware of this program and is supposed to have a fix by March 5

Is the basis for your statement only that there are known issues with Inherited IRA calculations, or do you have knowledge that the specific instance of FED_Taxable_Inherited_IRA reject having answered "No" to "Did you inherit the IRA from [IRA custodian]"?

I just spent some time on the phone with Premier support and she suggested resubmitting e-file after I verified that I had answered No. But I'm not going to refile if neither my data nor the program changed, since it took almost three days for the latest reject to happen. She did find basically the same information that the program says .. that there is a problem with Inherited IRA calculations but that doesn't necessarily sound like a fix for someone that doesn't even have one. Nevertheless, waiting for more updates is about all we can do.

On a side note: The problems I am having, and I'm sure many of you are having, this year with TT are unprecedented in nearly 30 years of my using it. But these are unprecedented times and the IRS delayed things this year like never before. I plan to take a deep breath and just wait for it to be fixed.

[NCC2]

I think it's telling that when I google the problem, I only see this thread on TurboTax. No one who filed with other companies seem to have had that problem?

[JantovenNF]

@Contrailz  Where can you see that pub 590-B is not yet updated?

[Contrailz]

@JantovenNF 

https://www.irs.gov/pub/irs-prior/p590b--2020.pdf 

[MP_NH]

Submitted yesterday and got rejected for this.  I have an inherited IRA but no guidance from Turbotax or the notice on how to fix, other that wait.  Is Turbotax updating or the IRS?   Never had this problem before.

[JantovenNF]

@Contrailz  Thank you.  I see from their calculation that they do use that worksheet.  I'm assuming that this has to be updated before taxes are due?  Otherwise there are a number of us who won't be able to file...

[wineshopper]

Adding my experience to the masses. 

Our return has:

1) Traditional nondeductible IRA to Roth conversions (backdoor Roth)

2) Inherited IRA RMD distribution

3) Traditional IRA moved into a 401k

When I got this error, I thought it was due to the Inherited IRA distribution (which gets taxed as income). As far as I can tell, that is entered correctly, the Traditional IRA ->401k was not taxed and the Backdoor Roths are not taxed, all as it should be.

What a mess - the comment above that other tax return software is not throwing this error leads me to believe that error we are all experiencing is a Turbotax internal 'feature'....

[DLynne]

• I also do not have an inherited IRA, and I double-checked to make sure I indicated that in completing my return.  My return was rejected by the IRS for a problem with an inherited IRA.   I think Turbotax has a bug in their tax program.   I am using an Android tablet.   Anyone else?

[evets]

Same thing here.  Checked IRA forms to make sure inherited was answered as "no".  Hopefully will be fixed ASAP.  First time I ever had a filing issue using TT.  

[NCC2]

I'm currently on the phone with one of the TT CPAs who is trying to research their internal note that states that they will have an update on 3/5, as I keep telling him that I don't see how their update will help me if all their fixing is the tax table for inherited IRAs since I DON'T have an inherited IRA!  I might just have to bite the bullet and start anew with another company because I have zero confidence in TT at this point. I do absolutely believe that the problem lies with TT and not the IRS. There's got to be a coding mistake in their software, judging by the other problems I've encountered with this year's return while using their software.

The CPA is emailing me their article about the problem and was very apologetic that he couldn't help fix the problem tonight. He went through my tax return with me and said everything looked fine. His only suggestion was perhaps to delete the 1099R that I had imported and reinputting it manually, but wait until 3/5 anyway. Then he said to call them and ask if the software had been updated. All of this is a lot of work on my part due to THEIR problems in return for having paid for the TT Premier Live version!

[seshuc]

I did manully entered my 1099-R and resumitted my returns after initial rejection. no use. I guess we have to wait for the fix. I hope they at least understand the problem before they release the fix on 3/5

[aonorato35]

Very frustrating as well as time consuming.  Turbo Tax should give us all a rebate as compensation.