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

[ATLNole1]

Got the same rejection as well. No inherited IRA but did report a backdoor Roth. Glad to know that it was not just me. Guess I will wait until the 5th to see if there is an update.

[Click]

We have little choice but to wait for a fix, but I'm not confident the promised March 5 update will fix this. It specifically said it would address calculations for inherited IRAs and none of us having this problem even have inherited IRAs.

It does appear the common thread is that we all had IRA distributions of some sort in 2020.

[macuser_22]

Do yiu have a 8606 form as part of your tax return?   I believe that a problem was discovered that some 8606 forms were not calculated correctly because non-existent inhearited basis was falsly added.

[Click]

Yes, both spouse and I have 8606 forms, but I don't see any populated entries there or on the IRA worksheet for an inherited IRA. Still, your news is encouraging since it gives us hope a solution may be coming.

[ATLNole1]

My 8606 is correctly filled out. While looking for answers I stumbled on other threads discussing the issue with inherited IRAs but not convinced a fix for that will solve our problem. Guess I will hang on for another week and see what happens.

[DZKPtax]

I am very disappointed in Turbotax this year. I have been using their software since 1995 and this year is the worst. I had to create a separate login just to use the software as under my regular login the software wouldn't open. Now I file my return and get this issue. Customer satisfaction and support is going downhill. I will look for another tax filing software product next year. Turbotax focus on fixing your issues instead of happy smiling faces over big refunds-get your act together!

[gceller]

Yes, I had a 8606 form, but as far as i can tell, everything in it was calculated properly and consistent with previous years' calculation. I will wait to refile after March 5, or after someone on this thread announces a successful refiling.

Whoever refiles and is successful, PLEASE let us know.

[mpdoherty]

Some commonalities seems to be: 

1. Traditional IRA => Roth IRA conversion

2. Some non-deductible contributions to the Traditional IRA (form 8606)

There is no mention (that I can find) of the FED_Taxable_Inherited_IRA error occurring prior to Feb 26 - Feb 27. Just spitballing here, but another possible commonality may be estimated taxes. In my case, I paid estimated taxes (to cover the IRA conversion) in 2020, but I could not file my 2020 return using Turbotax prior to Feb 26 because there was an error with Form 2210 - Underpayment of Estimated Tax. I did not have an underpayment, but no matter, Turbotax wouldn't process my return until an updated version of Form 2210 was released on, you guessed it, Feb 26.  

I'm wondering if other folks with FED_Taxable_Inherited_IRA error also had estimated taxes paid, and also waited for the updated Form 2210. 

Thoughts?

[Click]

> 1. Traditional IRA => Roth IRA conversion - Yes. However, I think others in this thread had distributions without Roth conversion

> 2. Some non-deductible contributions to the Traditional IRA (form 8606) - Yes, so I have a basis, but no new contributions this tax year

> had estimated taxes paid - Yes

> also waited for the updated Form 2210 - No. I was efile ready even before the Feb 26 updates, but was getting rejected due to a bug in Form 1116 that required a workaround

[fermin1952]

1. Traditional IRA => Roth IRA conversion - Yes. 

> 2. Some non-deductible contributions to the Traditional IRA (form 8606) - Yes. 

> had estimated taxes paid - Yes

> also waited for the updated Form 2210- Yes

[edmondb]

"Ditto" I am having the same problem. This is the 2nd problem for me.  First was form 2210 problem - had to wait 2 weeks to file, and now an inherited IRA rejection, with no inherited IRAs. Now wait again until March 5th  (maybe).

[noumiax]

Let us know if it works.

I reviewed the form 8606 and noticed that line 8 was left empty, but line 16 was filled appropriately.  I don't know if this has anything to do with it. 

[gloriah5200]

"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."

[TU2021]

I got rejection for the exact same last Friday! I don’t have inherited IRA! Email from Turbotax says exact same. I re-submitted the e-file one hour later after received the rejection email. So far almost 48 hours, I have not received any email or text message to inform whether it is accepted or rejected. If I still not receive any information on whether it is accepted or rejected, what should I do?

[Click]

I'm in the same boat. I made another attempt at filing about 48 hours ago, received receipt confirmation, but it has yet to be accepted or rejected. Perhaps somewhere they have realized an issue with returns being rejected for the non-existent inherited IRA and have put a hold on processing those until the issue is corrected. I hope that is the explanation.