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

[hathat]

I deleted form 8606 on my second attempt to refile.   Just go into the form "IRA Information Worksheet"    At the bottom left can click on delete form.    When I did the print preview it was gone.

[sunnyday2]

After downloading an update (Mac TT software), I resubmitted without changing anything.  The Federal tax return was accepted within 20 min.  Waiting for the state...

[mukesh123m]

Did anyone resubmit yet , do we have to do anything in tax return before resubmitting.

THis is what it says for me now.

Description of error:

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

What needs to be done:

There is a known issue with the federal return that has been addressed in a software update. Please update your software to the latest version. After applying the update, make any applicable changes if necessary, and re-transmit the return. Note: The calculation change may affect the taxpayer's refund.

[Thanh1]

I installed 3/4/21 update today, re e-filed, and got rejected (3rd time).

Just re e-filed again, did not make any change, got accepted in 20 minutes.

[atwyman]

One more data point of successful resubmission.  TurboTax Deluxe on Windows.  I didn't delete any forms.  I updated, then revisited both IRA sections (under Income and Deductions) to confirm all the numbers.  Final amount due didn't change.  I also had to change dates for underpayment penalty (unrelated to the problem I assume) and for direct debit.  Then I went through review and submit at 7:15pm Pacific.  Got confirmation of acceptance at 7:38pm Pacific.  Still waiting on state.

Thanks to everyone who posted on here.  It was useful to be able to confirm it wasn't my problem, hear the (sparse) responses from Intuit, and then hear that people were starting to succeed.

[jeanls20]

Oh happy day!  I have Premier on CD, windows version, got rejected like everybody else.

I uninstalled, reinstalled, resubmitted, DID NOTHING TO MY TAXES, and got accepted about 30 minutes later!

Thanks to everybody in this community. You really helped. Good luck to all!

[vident]

I reverified all the 1099-Rs and went through the interviews on income and deductions again and found one issue with the work sheet generated by TT. I had a direct roll over of a 401K in 2020. Some of that value appreciated by end of the year. What TT did is that it added my 1099-R Rolled over value to the Dec 31, 2020 FMV of the IRA and showed that as the IRA value as it considered my Roll over as something that would happen in 2021. I am quite sure that I said there are no outstanding rollovers. I corrected that manually. Ran the verify. And it seemed happy. Let's see what happens. Keeping fingers crossed. 

[ivan23]

Are you  charged for refiling state returns?

[cammj]

I am using the online version so there is nothing I can update. Since some of you were having luck getting accepted, I tried again to file online but guess what--my return was again rejected due to "problems with my inherited IRA", which I don't have any inherited IRA!!!  This is getting tiresome.  😠

[vident]

Normally, I have found that if you answer the 1099-R questions correctly, it handles the backdoor Roth conversion correctly. But here is a situation that happened to me and I had to pay tax but it is correct. 

Up until 2019 I had not value in an IRA as I would do a Roth Conversion the next day of contributing to the IRA and used to do it in the year i.e. between Jan-Dec. Last year I did the same. But then mid year, I retired and I rolled over my 401K to an IRA. Now I had an IRA position at the end of 2020 and also a Roth conversion of 7K. So TT calculated the ratio of the 7K that was taxable and most of it was. 

If you had a basis at the end of 2020 of all your IRAs combined then the back door would be partially taxable.

Brs,

[vident]

So the correction I made was accepted.Finally the Federal return was accepted. Now I have submitted the State return. Keeping fingers crossed. 

[atwyman]

---

@ivan23 wrote:

Are you  charged for refiling state returns?

---

I paid on the first rejected filing, and wasn't prompted to pay again when I refiled.  (TurboTax Deluxe on Windows.)

[SusanP]

Third time was successful!!!

Thanks for all who posted on the community .... it helped knowing others were having the same issue & that the 3/4 update worked only after the second submission!

[KevinFC]

Submitted my returns for the third time last night with no changes and they were both accepted! Thank you to everyone who shared their experience about this issue. It certainly gave me solace knowing that I was not at fault and not alone. 🙏👍

[Gurujin]

I had gotten the same initial rejection as everyone above about inherited IRA with no inherited IRA and having done a backdoor Roth conversion. 

I updated TurboTax today (3/5/2021). I didn't change anything. Resubmitted. 

11 minutes later, I receive notification my return is ACCEPTED. 

Thanks for the fix.