, Answering FAQ'sTurboTax Employee
Taxpayers, who lease vehicles for business purposes, may have a deduction that is reduced by an “inclusion” amount based on the fair market value of that vehicle.
Certain customers, who deducted the actual expenses on their leased business vehicle, may have filed an incorrect tax return.
TurboTax has fixed this issue.
How to Tell if You May Be Impacted
You may be affected if ALL of the following are true:
- You used TurboTax’s Home & Business product to prepare your return.
- You filed a 2011 federal tax return before June 28, 2012.
- You deducted the “actual” expenses for a business vehicle leased for more than 29 days.
- You didn’t use the standard mileage method for those expenses.
- The lease on the vehicle began after 2007.
- The Fair Market Value of that leased vehicle was more than $18,500 (more than $19,000 for a truck or van).
If you are affected, you may have overpaid your federal tax. You may need to amend your federal tax return. Your state return may also be affected and if so, you will need to amend it.
You can make the corrections yourself.
- To do it yourself, please follow these step-by-step instructions on:
- After you make the changes to your tax return, you will need to mail a copy of:
- Your federal amended return to the Internal Revenue Service and
- Your state amended return to your state tax authority, if your state return is affected
- Your printed return(s) will include instructions on how and where to mail it.
- If you need assistance, call us at the phone number in the email.
Or let us do the work for you.
- Please download and print this Authorization Form.
- Complete the form and fax it to us at the number printed at the top of the form.
- A TurboTax representative will contact you (within 15 days) when your corrected return is ready to be securely emailed back to you.
- You can print, sign, and mail the corrected return to the Internal Revenue Service and to your state tax authority if your state return is affected.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the Federal 2011: Leased Vehicles.