Return rejected for "potential issue with the calculation of your Taxable Inherited IRA," but I don't have an inherited IRA.

[Taxguy01]

It is now Wednesday 3/3/21. I posted my experience with this problem a few days ago and want to clarify a few things. First, I do not have an inherited IRA, a Roth IRA, need to do a backdoor Roth IRA, or any other special combinations of issues related to filing retirement income. I have just multiple traditional IRA's. Second, my 2021 filing that was rejected was identical to my filings for the last 4 - 5 years, which were accepted without issue. When I say identical I mean identical. This included the number of 1099-R's filed; the same payer's name, address and account numbers; and the amount of each accounts annual withdrawal. The only slight difference was the RMD amounts. Third, I check every day and as of today there has not been a TurboTax software update since 2/26/21. I am waiting for Friday 3/5/21 for the promised update. So the software problem does not seem to be related to inherited IRA's, Roth IRA's, backdoor Roth IRA filling; but seems to be a more fundamental and basic problem. Holding breath until 3/5.

[Enkur]

Well it happened to me as well. I always do two backdoor roth conversions every year (1 for me and one for my wife). This is the first time it has happened... I know for certain I didnt check the inherited IRA option. As I always do my taxes twice in Turbo Tax just in case I missed anything.

This is year the number of bugs has been crazy... looks like WFH has not been kind to Intuit.

all the bugs I encountered this year

1.wrong ESPP calculation (fixed in update)

2.No 1099-R import from E*trade (not fixed)

3.Only 1 import from Ally bank (2 accounts) (not fixed)

4.blank screen on first install (had to change resolution to fix) (not fixed)

[vijaygos]

So much for trying to file taxes early this year.  I got a rejection this morning for the exact same issue.  I am honestly contemplating doing a CPA and doing taxes myself. It cannot be harder than going through these issues with TurboTax year over year.

[rme6939]

I received the same rejection notice but I do have a taxable inherited IRA and I also did a partial taxable IRA to Roth IRA conversion and I had non-deductible contributions in the IRA that was partially converted to Roth.  I've look over the printed copy and I really don't think anything is in error.  I will wait until March 5 and see what happens.  I actually owe this year so I may just end up filing the old fashion way - paper by mail.

[mlbushnell]

Chiming in to say that my returns were rejected today with this same message regarding taxable inherited IRAs. I did not have an inherited IRA in 2020 (or ever).  Guess we'll see what comes of the March 5th update.  Worst case scenario I'll print it out and file the old fashioned way.

[user6203]

I received a rejection today.  Also a Roth conversion, and no, I don't have an inherited IRA.  If they are aware of the problem, why wouldn't the email message I received let me know that it is a glitch they expect to fix by a certain date, and that they will inform me when that is complete.  This is the second item for which forms or software was not ready by mid to late February, and filing was delayed.  

[taxfilerWA]

Count me in as another rejected tax return due to this issue.

We also do backdoor Roth IRA contributions with a zero Traditional IRA cost basis.  No inherited IRAs either.

[MichelleLO]

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? 

[tanyatartan]

I have exactly the same issue.  I will follow your suggested course of action.  Will there be a problem if I mail in a paper return instead of e-filing with Turbo Tax?  (This is my first year using Turbo.)  

[rme6939]

I don’t know why this response was posted. I did not get an error relating to Form 8606. I don’t see any post in this thread that mentions an error relating to Form 8606. 

[rme6939]

I went back over my return and particularly Form 8606. I have an error because inherited IRA withdrawals were being included. Inherited IRAs should not be included and therefore should not affect Form 8606. My guess is that anyone with a Form 8606 is getting rejected. The error has nothing to do with the Inherited IRA and everything to do with Form 8606. 

[renam13]

I do not have an inherited IRA.  There is no inherited IRA information that could be erroneously included on the 8606.  I've looked at my 8606.  It looks correct to me.  I'm still unclear how information I do not have is supposed to be the problem on my 8606.

[kmgm]

Same rejection reason has happened to me.  There are 2 traditional IRA's and one defined benefit plan 1099-R.  NOTHING INHERITED!!  And, two of the three exactly like last year.   I do have after-tax basis in the new IRA's which apply for the first time in 2020 as it was the first year a distribution was taken from the spouse's IRA.  I even went back and deleted all the original 1099-R form entries and re-did them to try to get around this rejection issue.  Sounds like if this last attempt comes back rejected again, just going to have wait on 3-5 to arrive.  GRRRRRR.

[sierra4]

I am having same issue, with backdoor Roth IRA, with the same message "There is a potential issue with the calculation of your Taxable Inherited IRA." I also do not have an inherited IRA. Also see message about March 5th, will try again then.

[briantbradford]

Same issue for me.  Very disappointed in the lack of communication on this issue from Intuit.  It’s crazy that their guidance is essentially that they hope to have it fixed by March 5.  I’ll be looking for a better option for 2021.