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

[TREM]

I'm not going to go all "cancel-culture" on this issue.  The company has a product, they had a code error that was discovered and will be corrected.   I'm happy to wait until March 5 (tomorrow) to revisit.

I'm disappointed in a situation where they acknowledge an issue that will be fixed (detected ~1 week prior to Mar 5), that they didn't just notify easily identified potential impactee's that they were recommending to not-file until the code was resolved.

Does it affect everyone?  Apparently not.   For the set that are affected, just warn me and give me the option to wait.

I'm still a TurboTax customer, have been for over 15 years.  Their feature set is better than their competition (IMHO).  Just communicate and keep me in the loop, and I'm happy to keep being a customer.

[phil2018]

I just opened my TT Premier (March 4 at 2pm est), and updates were installed. It then said corrections were made and I can file federal (it no longer showed the message about waiting to march 5th). I just filed. I will report back when I am rejected or accepted.

For the record, like others, I  did not inherit an IRA but I did have a non deductible IRA and converted it to Roth.

[luddite]

What the heck does this have to do with cancel culture? That comparison is insane.

[Malakavich]

Same error code here for doing a backdoor conversion.

Error message still saying saying March 5th.

[aonorato35]

I am using online filing.  logged on.   Still shows the update 5 March message.   Guess I still need to wait.

[jeanls20]

Turbo Tax emailed me saying my federal tax return was rejected "FED_Taxable_Inherited_IRA There is a potential issue with the calculation of your Taxable Inherited IRA." 

I took a distribution from an inherited IRA, rolled it back in before Aug31, and did a Roth conversion from a traditional IRA. 

I also got the message about updates by March 5th.  I guess I wait and hope for an answer?

[Reachingout]

UPDATE: just logged on for the 10th time today and the March 5 message has been replaced by what I have pasted below 

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

I'm willing to try a refile but how do I update software if I'm doing the online version? 

[aonorato35]

Wow.  Makes no sense.  I am also using the online version.  TT has to update the software on their website, not us.  Do they even know what the hell they are doing?

[Ktigers8383]

I got the same message but also do not know how to perform an update on the online version?? This is beyond frustrating

[Anonymous]

Anyone in this thread with backdoor Roth conversions live in PA and file your local EIT through Keystone Collections?

[vident]

danpaul22,

Good for you. I have a different situation. I also had a pension roll-over and a 401k roll-over to IRA. Both were direct rollover, so so no tax implication on 1099 and seems to be represented by TT correctly. And I had a backdoor IRA to Roth conversion. In this case, I have not gone deep into the weeds of the calculation but it did come up with some Tax on that. I assumed that this is so because now in 2020 I had IRA's while previously until 2019 my regular IRA basis was 0 and the Roth conversion did not lead to any tax consequence as I would do the Roth conversion within a day of contributing to the IRA.  However, to say that it is because of inherited IRA is just plain wrong and misleading. 

[NashayLO]

The error you are experiencing is connected with entries on Form 8606. Please see this link to sign up for updates related to this issue: Why Am I Getting a "Check This Entry" Error Related to For 8606?

[aonorato35]

Just got the same message!  Not sure what the hell to do.  I am going to hold off.

[Reachingout]

Okay I'm going to give it a try now (assuming that the online version is automatically updated?). Fingers crossed!

[Reachingout]

Refiled and returns are now pending. I will update when either accepted or rejected.