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

[mjew12]

I filed my return today, but it was rejected. The reason was "There is a potential issue with the calculation of Taxable Inherited IRA. I do not have an inherited IRA. I do have a traditional IRA and a Roth IRA. I use the backdoor Roth method, but my basis in the traditional IRA is 0. Why am I getting this error when I don't have a Taxable Inherited IRA?

[TeamT]

My returns were rejected today for the same reason, and I don't have an inherited IRA either!  I went back and looked at my answer to the question whether my distribution was an inherited IRA, and "No" was checked.  It looks like from other threads that there are a lot of people having problems between inherited IRAs (which they actually have) and Form 8606.  I'm guessing TurboTax is having glitches in their 1099-R section.  I'll probably try to call TurboTax tomorrow, but those other threads said they had a hard time trying to get the people to understand the problem, so they gave up....  Anyway, I'll look back here to see whether you get any answer, and you can look at my question for the same: "Returns rejected because TurboTax thinks Roth IRA conversion was an inherited IRA."  --Although you have a clearer subject line!  Good luck!

[TeamT]

I just got a response from someone saying: 

"It appears that TurboTax is REJECTING certain returns out of caution while they investigate various BUGs in TurboTax.  A really bad year for TurboTax."

Kind of an over-abundance of caution!

[Taxguy01]

The same thing happed to me yesterday 2/26/2021. The error message was "There is a potential issue with the calculation of your Taxable Inherited IRA". Neither my wife or I have an inherited IRA. We both have 1099-R's to input. I went back and checked that the answer to whether any one of them was an inherited IRA was answered no. I also looked at the "Forms in My Return" and none of the 1099-R forms had any inherited boxes checked. Right now I am dead in the water. There was a response in the error message that a correction is expected by 3/5/2021. I will give it to 3/5 then look for other filling alternatives. I have used Turbo Tax for quite a few years and this is the first time there was a catastrophic failure.

[gbmtax]

@Taxguy01 -- I'm in the same boat. 

How will we know that an update for this specific issue has been made? Are we suppose to re-file on Mar 6th and cross our fingers? I have not been impressed with the communication from TurboTax. 

I have never had a return rejected. Does anyone know if there is a maximum number of rejections you can receive -- in the event we have to use trial and error to determine whether or not TurboTax has resolved the issue? 

[PumpkinDog]

Why does it give you the option to re-file if it's just going to be rejected?

What needs to be done:

We are reviewing updates to Taxable Inherited IRA calculations. We expect to have these updates done by March 5th, 2021.

Ok???

[pgh-dad]

I received the same rejection notice today (3/1/21) and I don't have an inherited IRA. This is a Turbotax problem that Turbotax needs to fix. The message I received also said it should be fixed by 3/5/21 but I don't have much confidence that it will be corrected by then.

[atlacatlt]

Hello Everybody,

I have the same issue. My Federal return was rejected and my state return was rejected because my federal return was rejected. I dont know what is going on but Turbo Tax has a message stating that they hope they can fix the bug by Friday (03/05/21). Like everybody else I converted my Traditional IRA to Roth IRA and I think that's the issue.

[melanious]

Me too! 

[sailori1]

Same with me.  Very disappointed.  I expected better from TT.  I have recommended them to others for many years.  I expect a full explanation.

[almccomas]

Ditto for me. What I don't understand is why Turbotax says that it's "reviewing updates to Taxable Inherited IRA calculations" when the problem seems to be more fundamental. Somehow, Turbotax is apparently reporting calculations for Taxable Inherited IRAs that never existed.

[renam13]

I have the same message and all I did was take distributions from a tradition IRA that I own!  I don't think the bug has anything to do with Roth conversions.  I think it is more fundamental. ANY  IRA is at risk of receiving this message!

[wjdor]

I like others have same problem, My TIRA had a conversion to Roth and a cash out.  This is no way I had anything reported as Inherited.  I have been rejected twice first time included a message that my normal distribution code 7 1099R had to be split by me into 2 1099R's, one each for cash out and conversion.  I did this and tried again only to get the Inherited IRA message again.  I have little confidence when they can't even describe the problem (Inherited IRA) or acknowledge they have a bug.  Many wasted hours, no mention of if they will contact me when fixed, do I just keep trying?

[jwc79]

I'm in same situation.  Contributed to Traditional IRA and converted to Roth IRA.  I do NOT have an inherited IRA.  Return rejected with same message on Friday.  I thought maybe I had accidentally clicked the wrong button when it asked whether my wife's or my IRA was inherited, so I went back through and made sure right buttons were clicked and resubmitted.  Got notice again today that it is rejected, so will wait for March 5 and see what happens.  Frustratingly Turbotax used to post release notes for what their software updates actually fix, but they picked this year to stop posting release notes, so we won't know for sure if/when the problems are fixed.  I have used TT for more than ten years, but this bug (and another more minor bug with Schedule SE) are making me reconsider.  How do we complain directly to TT?  Their customer service is very poor and the bugs are terrible.  I understand there were a lot of late tax law changes with the COVID situation, but it's already March.  The software needs to be ready for people to file by now.

[jetsphan820]

Happy I stumbled upon this before submitting, my backdoor roth was also calculated incorrectly. These bugs and lack of ability to contact anyone to fix them has me filing my taxes elsewhere this year. Does anyone even know a way to contact them via email? I sent a message over facebook since I couldn't find anything. The fact they know this is an issue (on the app there is a message saying there are issues) and are still letting people file is insane and TT should be liable in some way for these issues.