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

[CarissaM]

Please follow the link in @MichelleLO comment above here, and sign up to receive the email when this issue will be resolved. 

[ivan23]

Are we talking about the same problem?

I did not get an error mentioning  Form 8606.

I do not have a taxable inherited IRA. 

My reject email state:

“FED_Taxable Inherited IRA - There is a potential issue with the calculation of your Taxable Inherited IRA.”

TT Deluxe desktop CD software says “There’s a potential issue with the calculation of your taxable inherited IRA."

  "We are reviewing updates to taxable inherited IRA calculations.  We expect to have this update done by March5 2021“

A review of my nondeductible IRA form 8606 and worksheet does not show errors.

[briantbradford]

My rejection letter said the same.  And I find no errors on my form 8606 or elsewhere.

[kmgm]

Yes, that is my situation.  I have 8606-S because of post-tax contributions but the form computations are fine.  No error message on the return at all until the rejection letter comes.  I did get an update to the turbotax system today (3-4) so hoping that might take care of the issue. 

I also note though that I also have a defined benefit plan that should be reported on line 5a and 5b of the Form 1040 and it is not showing any entry for line 5a.  The line 5b total is fine so I did not try to figure out how to override anything into line 5a.

[Thanh1]

Does the today update (3/4/2021) have the fix for this issue "potential issue with the calculation of your Taxable Inherited IRA,"?

[rme6939]

I had the error in my 8606 and I opened TT today and it was fixed.  I refiled and have not heard whether it was accepted yet.

[DawnC]

In TurboTax, some customers are getting the following error in review:

Check This Entry: "Form 8606 : Your calculations could not be completed. Ref code:X-XXX-XXX  

We’re currently working to resolve this issue. If you’d like to receive progress status updates, please sign up by using the link at the bottom of this article.    @briantbradford    @rme6939

[kmgm]

I just got another rejection from the ones I tried on 3-3-21 after deleting and re-doing the Form 1099-R entries.  But the message was different and said that the rejection was due to a known software issue that had been addressed in an update; make sure you were using the most recent version and to resubmit the returns.  I just did the resubmitting so we'll see.  I was never getting any other error message related to return so there was no way to know that it was going to be rejected due to a problem.

[ivan23]

DawnC

Please confirm this thread is also addressing a different 8606 issue other than Taxable inherited IRA calculation error?

Thank you.

[ivan23]

kmgm

Confirm  Taxable inherited IRA calculation error?

Thanks

[kmgm]

Yes.  That was the transmission rejection reason I kept getting "inherited IRA", but no actual inherited IRA in return.

[sierra4]

@DawnC  - as others have mentioned, this seems to be a different problem than the one described in that article.

[ghhopkins]

Same problem for me since 02/27/2021.  I updated this morning 03/04/2021.  Received update.  Refiled.  At 15:23 today received another rejection.  Says problem has been fixed, update your program and refile.  When I updated, system said I already have the latest version.  Should I refile again, or does Intuit just have me chasing my tail?

[kmgm · Accepted solution]

I updated, re-checked all the 1099-R entries and re-transmitted and finally - SUCCESS!!  Federal return was accepted.   Hooray!!!

[rme6939]

So my refiled return was rejected but the email told me to open my return in TT.  I did and it said it was fixed. I refiled again an this time (3rd time) it was accepted.