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

[vident]

I had taxes to be paid too, but may payment date is Mar 20. That didn't make a difference. Looks like a software bug.

Brs,

[prez2]

Same issue here.

I tried to e-file two times, same rejection code.

I just got a backdoor roth ira conversion and strictly followed the steps on this page: https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-convers...

[monocle23]

I'm trying to decide what the best move is here.  Intuit is accepting non-refundable (for online users) payment under the false pretense that it is capable of filing our taxes, and letting us pretend to file and re-file, when it plainly knows that it is incapable of actually filing our taxes.  Obviously no one would pay if Intuit was honest that it was incapable of filing.  Intuit is then being evasive (at best) about the cause of the problem, and stonewalling all efforts at communication.  (My seemingly well-intention representative told me the problem might be that I was using Safari instead of Chrome.  Sure.). 

Should I chargeback the credit card charge?  Contact my state Attorney General about the seemingly fraudulent business practices?  Or maybe, might Intuit just come clean and explain what is going on?  The latter would certainly be simpler for all of us.

[dhg72]

Yep, I'm waiting until 3/6. If things are still broken there, I'll contact customer service and demand a refund.

If I don't receive one, I'll chargeback and try another provider. Anyone have recommendations? I'm worried H&R and others will be swamped, so I'd prefer an online option that can handle basic itemized deductions, adjusted cost-basis for capital gains, backdoor Roth, etc.

[vident]

The problem with going to another provider is that they are designed to take your 2019 tax return. I am not sure if they can convert the 2020 TT tax file. I get shudders at the thought of going through that. I would then print and go with paper filing and be done with it. Next year is the time to look for other options.

Just my thought.

Brs,

Ravinder

[rericks1]

Add me to the list as well.  Backdoor Roth conversion just like 2019.  So glad I found this thread because I couldn't figure what I had done wrong only to learn this is a TT issue that now covers 17 pages of comments in the thread.  I'll wait until 3/5 for the fix and hope they have it done by then.  If not, I'm sure this will get them a lot of bad public relations and scrutiny from state attorney generals.  For myself I will file a different way and ask for a refund at that point

[travel2]

Same rejection and issues as everyone else. No inherited IRA, just normal distribution and Roth conversion like several past years with TT. I tried refiling, but got the same rejection again. Clearly a software bug, not user errors for all of us. Please fix this TT so we all can file. I'm losing confidence in your company and your software. 

[danpaul22]

I was able to isolate the issue. Turbo tax did an incorrect calculation of the taxable amount of distributed IRA / Pension. He took my contribution for traditional IRA and subtracted it from my taxable amount for my distribution. The result: The taxable amount does not match what is reported on the 1099-R. Whoops

[atwyman]

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@danpaul22 wrote:

I was able to isolate the issue. Turbo tax did an incorrect calculation of the taxable amount of distributed IRA / Pension. He took my contribution for traditional IRA and subtracted it from my taxable amount for my distribution. The result: The taxable amount does not match what is reported on the 1099-R. Whoops

---

That's the "basis" of your IRA, and is how the taxable amount is supposed to be calculated.  If you made non-deductible contributions, those were already taxed on the way in, so they don't get taxed on the way out.  Your earnings, or pre-tax contributions do get taxed.  As I understand it, the financial institution which holds your IRA generally doesn't track your basis, but you (and TT on your behalf) can do so and deduct it when doing a conversion.

[montegomm]

I have the same issue for a return filed on 3/3/21.  I double-checked and the information I put into TurboTax clearly indicated that the IRA was NOT inherited.  Seems that there is a problem with TurboTax's coding.  Intuit should be a little more forthcoming with this information and let its users know that returns with IRA distributions should not be filed.

[arusso03]

Same issue for me - did a backdoor Roth for the first time this year.

As far as I can tell, the bottom line calcs are all correct - so taxes owed are accurate.

Is there any downside to just mailing in the paper copy to IRS (if TT doesn't get this resolved promptly)?

I know Form 8606 would be included in the package but since the tax calculation is not impacted, would it really matter in the end?

I would still to the automatic bank debit for the payment.

[Click]

New program updates available today (3/4/2021). I did walk through the interview for the IRA distribution (1099-R), verified tax due/refund did not change, and then e-filed. Will post my results.

[wineshopper]

I have a similar question and observation. It does not appear that the tax calculations are incorrect for me on paper. If you are due a refund, I suspect a paper filing would result in a LONG wait. Theoretically, e-filing will result in a faster refund. Based on another much simpler e-filed federal return, it still took about 3 weeks to get the refund.

[Reachingout]

Click:

Will be interested in hearing if you are successful. Appreciate you posting the results for us. 

[vjp62]

OK, after receiving a robocall from TurboTax telling me to re-file, I did so.

AGAIN, our federal and state returns were rejected.  After logging back into TurboTax it gives me the exact same error message as before, FED_Taxable_Inherited_IRA etc. etc. etc.  And it's telling me, AGAIN, to wait until March 5.  I feel like I was being used as a guinea pig.

TURBOTAX, get your **** together.  You shouldn't be sending robocalls instructing people to re-file until you are CERTAIN this issue has been fixed.   At this point I'm not even sure I should re-file after March 5, until I've heard others have done so AND have had their returns accepted.