36,000 Alabamians must refile taxes after TurboTax error

3

Roughly 36,000 Alabamians who used TurboTax software for their 2015 tax returns will need to file an amended state income tax return for that year due to software programming errors.

According to the Alabama Department of Revenue (ADOR), affected taxpayers should been notified in letters by both TurboTax and ADOR over the summer of the errors which could have caused them to file an incorrect Alabama state income tax return. This means taxpayers may be owed additional refunds or, in some cases, taxpayers may owe more money.

“Some of our calculations relating to losses from “at-risk” investments were not correct,” TurboTax said in a statement. “We updated these calculations and want to help to make sure (a customer’s) return is complete and accurate. Because of this error, certain taxpayers may have filed an incorrect Alabama return. We apologize for this error and the inconvenience it may cause.”

Turbotax users have until Oct. 23 to file their amended return or risk facing problems on their 2016 return. TurboTax will reimburse customers for any penalties or interest assessed as a result of the issues.

State officials are urging Alabamians to handle the situation as quickly as possible. As of this week, the majority of possibly affected taxpayers have not corrected their return.

How do I know if I need to re-file with TurboTax?

You WILL need to amend your 2015 Alabama tax return if you received an email from TurboTax that discussed the following:

  • In TurboTax interview screen “Federal Refund for Prior Years,” you entered your original 2012, 2013, 2014, or 2015 federal refund AND/OR
  • In TurboTax interview screen “Federal Income Taxes Paid for a Prior Tax Year,” you entered your original 2012, 2013, 2014, or 2015 federal balance due.

You MAY need to amend your 2015 Alabama tax return if you received an email from TurboTax that discussed the following:

  • In TurboTax interview screen “Federal Refund for Prior Years,” you entered an amount not related to amending a prior federal return or receiving an adjustment letter from the IRS AND/OR
  • In TurboTax interview screen  “Federal Income Taxes Paid for a Prior Tax Year,” you entered an amount not related to amending a prior federal return or receiving an adjustment letter from the IRS.

Affected TurboTax customers can amend their returns by following the instructions linked here: 2015 Alabama Amend Instructions for the TurboTax Online product. Taxpayers who have questions or need assistance amending their returns should call TurboTax directly at 877-216-2138 and tell the TurboTax agent they are calling about 2015 Alabama: Prior Year Refunds/Payment.

Share.

3 Comments

Show Buttons
Hide Buttons
%d bloggers like this: