Returns Rejected - FED_Taxable_Inherited_IRA

[Anonymous]

I received an email that my Federal and State returns were rejected for "FED_Taxable_Inherited_IRA - There is a potential issue with the calculation of your Taxable Inherited IRA."  I did not have any inherited IRAs, only a Traditional and Roth that were both opened directly by me in previous years.  I only use the Traditional to fund and do backdoor Roth conversions.  

When I log in and click "Fix My Return", it immediately says "Keep going to refile your returns - You've visited all the reject errors on your federal return", when I did not actually view or re-visit any errors at all.  When I click "Revisit" again from this screen, it gives somewhat more of a description of the error:

Description of error:

There is a potential issue with the calculation of your Taxable Inherited IRA.

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.

Again, however, I do not have any inherited IRAs.  Is anyone else running into this with backdoor Roth conversions on their return?  Is the above  error description not accurate / all inclusive of the stated IRA calculation errors and will the update on March 5 correct my filing issue as well?

[roznjim]

FYI, I also do not have an Inherited IRA, so why was my Federal Return rejected?

Also, on my MN state return the computer did not use Line 11 for the Smart worksheet for the Social Security Subtraction for Step 1.

And the computer did not enter any number for Schedule M1NC Line 31 Worksheet for my Mn taxes--I had to enter that manually.

[Reachingout]

UPDATE: I spoke on the phone with TurboTax representative about this issue a few minutes ago. She checked with her colleagues and found a notice that TT is aware of issue and anticipates a remedy by MARCH 25. At that time we should allegedly be able to sign into our returns, choose Review from the left hand column, go through the review steps and then resubmit/Efile. She indicates that the updated software will "fix the glitch automatically" and we shouldn't need to make any changes on our end. She also alleged that there was no limit as to how many times we try submitting. 

[Reachingout]

Additional comment/clarification: my IRA is not inherited, is a traditional one, I have been taking distributions for past 2 years with no changes made to it.  

[RobertMaxB]

This is a known issue/ duplicate threat--- there's a longer thread with hundreds of comments at:

https://ttlc.intuit.com/community/taxes/discussion/re-my-return-was-rejected-due-to-fed-taxable-inhe...

[RobertMaxB]

Update: Some people with this error are now getting returns accepted (including me), we are discussing on main thread. Turbotax update on 3/4 seems to have fixed it (for many, not sure if 100% fixed).

[KatrinaLO]

Once your tax return has been submitted, the most up to date information will come from the IRS. Until the IRS starts processing it on their own, you may not find record of it or the website may say that you have put in incorrect information when tracking your federal refund. As your return moves through the system, the status of it will be updated accordingly. 

[leopold]

I am having the same problem.  I have updated the program on March 4th and efiled for the second time only to get rejected for the same problem.  I do not have any inherited IRAs. 

[ReneeM7122]

The error has to do with a software issue on Form 8606 which has been fixed.  To fix the problem on your tax return, please update TurboTax if you are using a desktop version.  Then delete your 1099-R forms and reenter them.  Once you go through the final review, it should work.  1099-R information, final review and refiled again. It was accepted by IRS.

Here is a TurboTax article about inherited property.

@leopold