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

[Thanh1]

I got rejection again (3rd time) after the 3/4/21 update on my TT premiere on PC with same error code FED_Taxable_Inherited_IRA which I don't have. TT agent can't tell me what fixes are in the 3/4/21 update. They recommended "just install the 3/4/21 update and refile to see what happen"

[moneymill]

Same problem here. I submitted tax returns on 3/3 and it was rejected on 3/4 (inherited IRA that I don't have, but I did make a 2020 non-deductible traditional IRA contribution with subsequent backdoor Roth IRA conversion (using downloaded TT home and business software)). A phone call with a TT representative resulted in the same conclusion.. an update should be coming on 3/5 (no ETA) to fix this problem, then re-file my tax return after installing this 3/5 update...

[edvalens]

I have the same inherited IRA reason for IRS rejection. My return was submitted March 3. Turbotax claims an update has fixed this problem, but there has been no update since I submitted my return. I only have a regular IRA. Will wait till tomorrow (March 5) to see if there is an update to Turbotax.

[motoviper]

Correction.

After I submitted the second time and got rejected(after the update today).  I went into Turbotax and went to the IRA/1099R section and stepped through the 1099Rs for the  IRA to Roth IRA conversion steps and there are new steps in there that should populate the 8606 form correctly now.  This was NOT in there before the update. 

Submitting again and hopefully will be good this time.

[usertoddbmc]

What did they change/what new steps were added for the backdoor Roth? What did it change on your 8606s?

[zxzxzxzxzxzx]

I found this error after searching for Backdoor Roth conversion for TT. 

After following instructions located on the TT site (https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-convers...), I'm still getting taxed for my backdoor conversion. 

Can anyone provide instructions on how to do this properly? 

Thanks 

[sjcord]

Motoviper, what changed in the 1099R section?  I just went back through that section and didn't find anything new or changed.

[Anonymous]

Motoviper, I went back and did as you suggested.  I did notice that I was asked again about inherited IRAs.  I checked no and resubmitted.  I don't see any down side to be rejected again.

[Anonymous]

xzxz... I think you are in the wrong thread.   I did have the same problem as you last year though.  You need to revisit the 1099-R section and make sure you answer the questions that follow very carefully.

[Anonymous]

HI All

Good news. I had submitted on the 1st and got rejection on the 3rd (same inherited ira error which I do not have; just backdoor conversion as in previous years). Updated the software this morning (Windows, Deluxe) but did not re-file till around 5 minutes ago. Just got reply that the return has been accepted.

[detest-heretic-h]

I wonder if they will address the online version.

[jeanls20]

Great news! I hope Premium works now too.

[jw-faulkner]

@Reachingout 

I just re-filed and it was "Accepted!" 

Before re-filing, I completely removed my IRA distribution form 1099-Rs, just to start with a clean slate.  I printed the (temporary file) output to be sure it deleted the 1099-R s and Form 8606 and it did remove everything.   Next I put the 1099-Rs back into my Income section, reran and rechecked everything and hit submit.    I had one direct rollover from a 401K into Traditional IRA, and another Roth IRA conversion from a different Traditional IRA (with nondeductible contributions), therefore the Form 8606.

I believe when we are using the Online version the software updates occur automatically.   I did not do anything special to update my Online account.  

[TB_61]

Good news all! After an hour on the phone with a rep and a third refile my federal return was accepted. Make sure that you are using Google Chrome (I was using FireFox) if you are using TurboTax Online. I also had to delete my 1099-R and re-enter it. So steps: 1) user Chrome 2) delete your 1099-R and MANUALLY enter it (import didnt pass review, it could be how it parses out some of the data) and then clicked through and continued. It worked. Hopefully this helps!

[JMars]

Great news!  Filed successfully just now, after being disappointed and posting about it here earlier this week.  (But it’s also kind of infuriating as I will get to below.)

More details: I use desktop deluxe for Mac.  I didn’t originally import the 1099-R but proceeded through the Easy Step dialogue which created the 1099-R forms.  After my filing was rejected previously, I went back today into Forms, deleted each 1099-R for myself and spouse, then went through the EasyStep dialogue which generated new forms.  The bottom line (refund) on the 1040 turned out the same.  I got confirmation of acceptance within an hour.

So, if TT finally updated their software to eliminate the problem, why couldn't they communicate this to all of us?  That question is infuriating.