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New Member
posted Apr 14, 2024 10:35:45 AM

I did not get an innovative vehicle in 2023 but it’s still trying to add it to my state return can I undo this?

I did not get a vehicle in 2023 and I didn’t waive my right to not claim my car on my state taxes, which was a mistake I misunderstood, and now turbo tax is trying to make me claim an innovative vehicle tax credit and it does not apply to me. It’s trying to at 5,000 to my return that I do not qualify for. How do I fix this?

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1 Replies
Level 15
Apr 14, 2024 10:39:47 AM

Assuming that you're referring to the Colorado state credit, to remove the innovative motor vehicle credit information in TurboTax Online: 

  1. Open TurboTax Online
  2. Select Tax Home in the left pane
  3. On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select StartContinue, or Pick up where you left off
  4. Proceed through the state screens until you come to the Take a look at Colorado credits and taxes screen
  5. Near the top of the page, select Edit to the right of Innovative Motor Vehicle Credit
  6. On the Motor Vehicle Tax Credit Assigned to Financing Company? screen, answer Yes

This will remove the credit from your return.  Don't worry, you're not perjuring yourself by making this statement.  The state doesn't see this response -- your answer simply disqualifies you for the credit within the TurboTax program.