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

[JantovenNF]

Will reply to all on this thread, hopefully others see what I am reporting.

On the "Forms" view, I can see that on form 8606, on lines 13, 15c, and 18, there is an asterisk, and that asterisk says "from Taxable IRA distribution worksheet (per IRS pub 590-B)."

As was mentioned in this thread, pub 590-B is currently not yet updated by the IRS for the current tax year.

While I'd like to blame TT for this, if the IRS' form isn't yet updated for the current tax year, I can see how TT can't yet file their returns since they don't have the finalized form / publication.

[bensanford]

I just received the same Error, and my Federal and VA State returns were both rejected.

[Daisysdad]

Same problem here.  Went through all entries again, all correct.  I will wait until 3/5, but not happy about this.

[JMars]

Responding to "While I'd like to blame TT for this, if the IRS' form isn't yet updated for the current tax year, I can see how TT can't yet file their returns since they don't have the finalized form / publication."

Perhaps, but it seems this thread started on Friday.  Is it possible that people were able to file prior to that without problems?  If so, then it would appear to be a TT problem.  I can only hope they are putting serious resources into determining the problem and fixing it.   

[Click]

> on form 8606, on lines 13, 15c, and 18, there is an asterisk

There is no asterisk on mine, as I didn't make IRA contributions in 2020. The asterisk only appears in that situation.

> pub 590-B is currently not yet updated by the IRS for the current tax year

You are correct here to call it a publication.

> IRS' form isn't yet updated for the current tax year

It is not a form that has to be approved before filing. All forms related to this issue are approved.

> While I'd like to blame TT for this, if the IRS

As I posted above, we do need to give TT a little slack this year. It is not a typical tax year, and TT's issues at this point are quite unusual. That said, while I do not fault TT if the IRS has been sluggish, it is TT's fault that 1) it allows you to proceed with efiling if a form you are using is not yet ready, and 2) they should post something official in this thread letting us know they are aware of this specific issue and/or give their support people information to tell people who have this well-defined problem.

[NCC2]

I use the online version and the only option I see is to delete a form, not view it.

I did look at the 8606 form that was submitted with my return and there aren't any asterisks on any of the lines.

And by the way, why would TT have let us file our returns if they didn't have the updated form? Of course it's their problem, whatever the problem is. Again, why wouldn't users from other companies report having the same problem? Until I hear that others are experiencing the same without having used TT, then I'll continue to draw the same conclusion.

[JantovenNF]

@Click  Thanks for clarifying, and those are valid points.  Maybe I am cutting them too much slack.  Hopefully it'll be resolved by 3/5 ..

[Craigerator3]

Filed yesterday, got the rejection today. I too did the backdoor ROTH for both my wife & I but have been doing it via TT with no issues. Meticulously reviewed form 8606 on this return to past returns (that got accepted first try) & everything is identical in terms of “blanks” and “0’s” with the only difference being asterisk accompanying line 15a for past returns and the asterisk for this years going on line 15c. Fingers crossed this will be resolved by 3/5

[JantovenNF]

If for some reason this issue is not resolved in a timely fashion - is there a way we can print these forms and just like, literally mail it in?  I do not want to do this, but I also don't want to go through the hassle of having to go through all of this again with another tax service provider this same year.

[Bom2]

So this is what the IRS says if you try to look at Pub. 590-B online:  

"However, you cannot file draft forms and can only rely on drafts of instructions and publications for return preparation, not final review before filing."

My guess is we won't be able to file until this publication is finalized.

(FWIW, same error today. Traditional IRA nondeductible contribution and conversion to Roth; no inherited IRA.) 

[Topher2021]

Me too!

Got a "rejection for an inherited IRA" that I didn't have.

Mine was a backdoor Roth.

Clearly a TurboTax error of some sort since we are all see the same error unrelated to an inherited IRA and mostly related to backdoor Roths.  Thank you to everyone who posted.  It's good to know I don't have to try to figure this out on my own.  I'll wait for the resolution.

[Topher2021]

JantovenNF...

Yes, since yours was rejected, it hasn't been filed and as such we all need to refile either electronically or via paper.   I am concerned about paper filing this year since both the post office AND the IRS are significantly backlogged.

[dhg72]

" You asked me if there is a potential issue with the calculation of your Taxable Inherited IRA." because your return was rejected for the following reason: "FED_Taxable_Inherited_IRA -  and you don't have an inherited IRA. 

I reviewed that for you and found that the IRS' form isn't yet updated for the current tax year, and Turbo Tax can't yet file their returns since they don't have the finalized form / publication.  I have included a link for information about the reject . "

This is the response from my "expert review" from TT. It links to this thread, so I'm not clear on whether they're just regurgitating the conclusion we've come to or whether this is officially the reason, but I'm guessing we can't file until Pub. 590-B is finalized. Maybe that's 3/5, maybe not.

Out of curiosity: anyone know anyone who did a backdoor Roth who filed successfully, either with TT or another company?

[retired_QA]

I got the same issue as everyone here.  It seems the issue started with the 2/26 TT program update and not before.

Why doesn't TT roll-back that software update (at least the part pertaining to IRAs) instead of making us all wait until 3/5?  this may not be possible - I don't know how their software / upgrade process works in a roll-back scenario 

Reminder: if we do have to wait until 3/5, make sure to update your TT software before re-filing.  

[usertoddbmc]

Same here. Backdoor ROTH, no inherited IRA.

I tried filling twice and got the error twice.

Reject Code FED_Taxable_Inherited