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

[rogerbrown48]

I also have a rejected Federal return,  ... I do not have an inherited IRA.

Roger Brown, West Hartford CT.

[alw33]

Also rejected with same error code. Traditional IRA to Roth IRA conversion. I do not have an inherited IRA or any taxable distributions.

[cdliao]

Same here. Reject Code FED_Taxable_Inherite   

Description of error:

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

What needs to be done:

We are reviewing updates to Taxable Inherited IRA calculations. We expect to have these updates done by March 5th, 2021.

Will wait and see what is the solution. 

[williasp]

Per tiutni who said: "I have both a traditional IRA with a basis and an inherited IRA without a basis. The inherited IRA distribution keeps showing up on the Form 8606 for the traditional IRA. This is WRONG"

I was just working on my son's return and got to the IRA section, then checked the 8606 and related forms.  He has an inherited IRA which pays out modest taxable distributions.  He also does a backdoor Roth, where he makes a non-deductible t-IRA contribution, then converts to Roth.  When I checked the 8606, it looked rather funky.  Ordinarily, it would show a $6000 contribution and maybe a $6002 conversion, so only $2 would be taxable.  For some crazy reason, it looked quite different.  Apparently, TT is mistakenly including the inherited IRA distribution as part of the trad-IRA and that mucks up the taxable calculation considerably.  So I suspect that is where the error lies.

[snowmman]

me too.

In my case

distributions from both me and wife's IRAs that were returned to the original IRAs within 60 days.

[agn2021]

Same here, IF2.

[Reachingout]

I received rejection for stated reason as above. I have a traditional IRA which was not inherited and have been receiving distributions for the last couple years. I have not made any changes to the IRA during this time. Has anyone been able to speak with TurboTax about this issue?

[vident]

Kevin,

Better to wait until Mar 6 and try assuming they fix the issue as they said by Mar 5. Also, I usually wait for Federal to be accepted before efiling state. 

Brs,

[vident]

Someone said Turbo tax support said it was a bug as well as the message says that they may be fixing it by Mar 5. Best to wait and efile after that.

Brs,

[TB_61]

Same here. I did a conversion (not penalized, #2 box checked) from traditional to Roth and got this same error. I didnt inherit an IRA. I received the same message about it being fixed by 3/5.

[TB_61]

same here....my brokerage firm gave me a 1099-R for it, maybe that could be the issue?

[skytom88]

Same error message too. I also don't have an inherited IRA. I only have non-deductible traditional IRA to Roth conversion. I'm going to wait until after March 5th and see what happens. 

[indigohope]

I was told by TurboTax that this is an IRS.gov issue. I went on IRS.gov and did not see anything documented re: Inherited IRA. Mine was rejected twice now.  April will be here before you know it.  WE BETTER NOT get penalized for this! This is not our fault!

[indigohope]

TT said I cannot file by mail....because it is already processing....is this true? 

[aonorato35]

Would everyone having this so called "Inherited IRA" problem indicate whether they are filing online, using a CD or downloading.  Also, include the version you are using; Basic, Deluxe, Premium, etc?  perhaps we can isolate the issue.  Thanks.  I am trying to file online Premier version.  Turbo Tax representatives have been of little help so far.   As far as I can tell other companies (HR Block, Tax Act, etc.) not having the same problem.