Form 8936 is filling in box 4b incorrectly

[impala79]

I bout a Chevy Volt in August 2019, so i should get 7500*50%=3750 for my credit due to the IRS phase out for General Motors. TurboTax correctly detects the 7500 part, but it does not apply the 50% reduction. So, this results in my 1040 calculated a refund that is 3750 too high! 

FYI on the actual Form 8936 that I view when I print the return has line 4a correct as 7500, 4b incorrect as 100% (should be 50%), and 4c as 7500 (should be 3750).

Now, if in TurboTax I manually change the 7500 to 3750, my 1040 is correct with the proper refund amount, but my form  8936 is still wrong. In line 4a it says 3750 (should be 7500), 4b says 100% (should be 50%), and 4c says 3750 (technically correct, I suppose)

I spent a while on the phone with a very helpful support person, and she confirmed there's no way to fix this right now, and that I should print and file via mail, and in the meantime she would escalate the support ticket to some higher-ups.

I've read other posts in this forum where turbotax folks claim this form was fixed in lat Feb or early March. Well, it's the end of April, and it's definitely broken.

[Critter]

Since you cannot manually change anything in the ONLINE program you must be using the DOWNLOADED version ... did you run a program update lately ?   If not do so now. 

How do I update TurboTax CD/Download?

Although you can update over a wireless or dial-up connection, it's best to use a wired, high-speed connection to speed things up and minimize the possibility of data corruption.

Select Check for Updates from the Online menu in TurboTax (Windows) or quit and reopen the program (Mac). If new updates are available, you'll get a message to download them.

If you get disconnected while updating, try again and our update will pick up where it left off.

Windows users: Download a manual update if you're having trouble updating from the Online menu.

Related Information:

• Troubleshoot TurboTax for Windows Updating Issues
• Troubleshoot TurboTax for Mac Updating Issues
• What is a manual update?

[impala79]

No, I'm online. By "manually" I meant in TurboTax online, they suggest 7500 as the max credit, and give the option to change it, which is what i did.

[TerryA]

I just tried entering a GM vehicle on a Form 8936, purchased 8/15/2019 and I didn't get the 50% phaseout either - it's allowing 100%. I tried all the other GM "Makes" the program looks for and none of them worked. Tesla works, though.

I also noticed that if a second vehicle is entered and it's a GM Make then the phaseout is computed. Hmmm.. that's a bug fer shur. I'll get that reported.

For the phaseout the "Make" entries it looks for are (case insensitive):

Buick, Cadillac, Chevrolet, Chevy, General Motors, GM, GMC, Tesla.

[impala79]

I tried both Chevrolet and Chevy and double and triple checked the spelling, but the problem still persists. Turbotax is not calculating the phase out percentage correctly. I also tried deleting the vehicle, clearing my cache and cookies, and adding it again, but no dice. I even tried logging in different operating systems (win an linux), but the problem exists in both.

[TerryA · Accepted solution]

I just figured out that it's the time period 7/01/2019 - 09/30/2019 that GM vehicles aren't getting the 50% phaseout. If you enter a date in 4/01/2019 - 06/30/2019 then you get 50%.

You could enter 6/30/2019 and get the correct result on your 8936 and only be off on the date by a month+ which the IRS isn't going to care about  <;-)

This will be fixed in the next TT 1040 update.

[impala79]

Yes, I can verify on my end! Thanks for figuring it out.