I received a letter from Va Tax regarding my tax credit for virginia vehicle testing equipment. I have no testing equipment on my vehicle, this needs to be corrected

[Opus 17 · Accepted solution]

It sounds like you claimed the credit on a prior tax return.  You need to get a copy of whatever year that tax return was (download or print a copy from your account if needed), verify whether or not you really did claim that credit, and then write a letter back to VA tax with an explanation and possible a repayment if you don't qualify.

When you prepare your state tax return, most information flows from the federal to the state return automatically then there are several pages of state-specific deductions, credits and extra taxes.  I have never seen Turbotax claim a state credit by itself, you may have claimed it by accident.  

Turbotax guarantees accurate calculations but will not protect you if you claim something that you don't qualify for, the program takes your word if you claim something.  If you think the program did mess up, you can file a claim to start an investigation.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/submit-claim-turb...

But you need to deal with VA first according to the deadlines in the letter. You can't just ignore them while you wait for an answer from Turbotax.  You always owe your own correct tax, but if the program did make a mistake, Turbotax will cover any interest or penalties.

[TomK2023]

Somewhere during the State interview process, a box may have been accidentally checked or "Yes" was selected instead of "No."

Since you have already filed and received a letter, you cannot simply "change" the return (you may need to amend it.

Respond to the Virginia Tax Letter; your letter should have a Correspondence ID (usually in the top right).

Inform the Virginia Department of Taxation that the credit was claimed in error. Some letters allow you to respond online via the Virginia Tax Website.  Some letters allow you to respond online via the Virginia Tax Website (check here first as you may not need to amend).

Amend Your Virginia State Tax Return:

1. Open your return.
2. On the "Home" screen, look for the option to "Amend" (change) return.
3. "DO NOT start the amendment until you have a copy of your originally filed return for reference.
4. Click on the Virginia State section, and look for Credits or Business Credits (find Schedule CR (Credit Computation)).
5. Locate the Vehicle Emissions Testing Equipment Credit and change the amount to $0 (or delete the entry).
6. The program will generate a Form 760ADJ or Form 760 (with the "Amended" box checked).

If removing the credit means you now owe money, pay it as soon as possible to avoid interest.

When the program asks for the reason for amending, write: "To remove the Vehicle Emissions Testing Equipment Credit which was claimed in error; taxpayer does not own a certified inspection station."