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Level 2

Question

Oregon - Metro Supportive Housing Services and Multnomah County Preschool for All Taxes

Forum|Forum|4 years ago
April 15, 2022
8 replies
29 views

The Portland Oregon Metro counties instituted a new housing services tax in 2021. Multnomah county instituted a preschool for all tax in 2021. Does Turbo Tax calculate these taxes and forms? Or do I have to calculate and file separately outside of Turbo Tax?

timwood0

Level 2

Neither. You enter them as state and local taxes paid, subject to the $10,000 SALT cap. 😞 TurboTax combines that data plus data for other deductions to recommend either itemizing deductions or taking the standard deduction.

Taxeroo32Author

Level 2

Thanks. I understand the SALT but am trying to determine if the actual local tax I may owe for these two taxes is calculated and prepared by TT?

timwood0

Level 2

No, you have to enter those amounts from the statements/invoices those gov't agencies should have sent you.

MFC1

Level 2

In yesterday's mail, I received a letter with the subject line - Notice of Personal Income Tax Owed - Metro Supportive Housing Services (SHS) Program for the tax year 2021. The letter suggests I have 45 days to pay this tax or penalties and interest will be assessed.

As I read the chain of message here, the summary seems to be - Turbo Tax customers are on their own to determine how this tax impacts them. There are no tools within Turbo Tax Premier to calculate the amount of tax due. There are no forms within Turbo Tax Premier to assist with filing with Metro. (Metro is a government agency reaching the three largest counties in Oregon (Clackamas, Multnomah and Washington - almost 2,000,000 people)

The messages also suggest that while Turbo Tax cannot support it, another tax tool called: TaxAct can and does.

Is my summary accurate?

mbpdx

Level 3

Unless TurboTax will be updated to address this next year, I believe you are correct. I would note that you can ask your employer to withhold for this tax year so you avoid penalties for next year. There are not many pay periods left in the year but you should be able to pick the $$ amount to be withheld. There are forms/additional information available on the metro/ Pdx website (it appears Pdx is acting as the processing agent for metro). Lots of other TurboTax users are likely receiving similar surprises. Hope TurboTax clarifies if they are going to include this going forward ….

MFC1

Level 2

Thank you for your confirmation and for pointing me to the City of Portland site: https://pro.portland.gov/_/

Yes - this letter from the City of Portland came as a surprise! Fingers crossed that Turbo Tax expands their service for our 2022 returns.

Thanks again, Mike

mbpdx

Level 3

Does this years TurboTax support these local taxes?

xmasbaby0

Level 15

City Tax Returns

TurboTax only prepares a few city or local tax returns as an extra step in your state return. For most local tax returns you are on your own. Your only record of paying your local tax will be your own bank/credit card records

https://ttlc.intuit.com/questions/1899325-which-city-tax-returns-can-i-do-in-the-turbotax-state-program

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

mbpdx

Level 3

Thank you for the information. Unfortunately that means this will be the first year in over 15 years that I don’t buy TurboTax.

rmardo

Level 2

Feb 6, 2023 update. I just spoke with Portland City Tax / Rev department. And they state that they have given Turbotax all of the forms and calculations and programs to enable this. But Turbotax has still not even responded to them.

AmyC

Level 15

Turbo Tax handled the Portland Arts Tax last year and again this year. Follow these steps:

Enter your return, go to federal,
deductions and credits,
scroll down to Estimates and Other Taxes Paid,
select Estimates,
scroll down to the bottom option, 2021 local estimated taxes paid in 2022
Start / Edit
Dropdown box, choose Portland Arts,
enter the amount

If you itemize on federal, this will be added to your sch A. It may be deductible on the OR return - based on income and property tax also.

See Arts Tax Filing and Payment Information | Portland.gov

@rmardo

@tspike

@mbpdx

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soulstiss

Level 2

This approach would only document the Arts Tax for your Federal/State income tax return. It doesn't actually file and pay the Arts Tax.

BenPDX

Level 2

Man, I just got a notice today, in July 2023, about these SHS and PFA taxes. I had no idea it was even a thing. So even though they're waiving the penalties for 2021, it sure would have been nice to know about because now I'm suddenly out $1,400 for something I wasn't expecting. If TT won't process the form, they should at least alert to tax preparer to the existence of this tax so they can save the money and prepare. It's not really the fault of TT, as Portland Metro should not be sending out notices years late, but TT should have a flag for it. Part of the problem might be there's an income threshold for these taxes, and they don't know until after the taxes are filed whether you owe it or not. Horrible and confusing program, major headache for tax payers.

Bbczisny

Level 2

Is this going to be fixed for next year? Really unhappy zero notification from Turbo Tax and after paying so much money for TurboTax had to file local taxes for 2 years on cities website.

Totally unacceptable to have not even gotten a prompt that I needed to do this. If not supported will find new tax software provider.

DoninGA

Level 15

@Bbczisny TurboTax only supports a very few city and local tax returns. Oregon is not one of the states where the returns for cities and localities are supported.

See this TurboTax support FAQ for supported cities and localities - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/city-tax-returns-turbotax-state-program/L0fev7XS3_US_en_US

Applesauce 12

Level 2

@Bbczisny and @DoninGA Not helpful. Why even bother posting this (it's already been posted)? Also it's factually incorrect. Portland Metro requires a proper filing (MET-40) as well as withholding by your employer so there is absolutely more than just payment as record.

Whether Turbotax supports it or not, they don't even bother notifying preparers that it even exists. As a tax preparation software is not the bare minimum that should be expected? This isn't some obscure tax. Portland Metro taxes affect 3M people and wholly 75% of the state of Oregon.

TaxAct and others both notify users as well as populate the form for submission. They manage, surely TurboTax can figure it out.

mbpdx

Level 3

the 2023 turbo tax appears to account for the Supportive Housing Tax but not the Preschool Tax - is that correct?I had my employer withhold separately for both, but I do not see where TurboTax addresses the pre-school tax. (it only asks for the SHS - housing tax, account number). Have they just not added the Preschool tax or do we treat them all as one now?

DaveF1006

Level 15

Turbo Tax does not address this directly but you may receive this payment as an estimated tax payment. elect Federal > Deductions & Credits.

In the Estimates and Other Taxes Paid section, select Start/Update next to Estimated Tax Payments.
On the next screen, select Start/Revisit next to Local.
Enter your payment(s) on the next screen, How much did you pay in local estimated taxes? In the dropdown list, select More Than One/None and enter the amount paid in the box.
If you have more than one entry, repeat the steps for additional entries. The payment(s) will be included in Schedule A with other state and local income taxes on the Oregon tax return.

Be sure you receive credit for the SHS tax also. If not, you may need to add this also outlined in steps 3 and 4 although. You may not need to to this since this this has already been addressed by asking for the account number.

[Edited 02/06/24|2:15 pm PST]

@mbpdx

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Kirsten-A

Level 2

I'm going through these steps to enter the deduction and I see options in the dropdown for the arts tax, SHS, and PFA. However I'm confused about which year to use - "Local estimated taxes for 2023" or "2022 local estimated taxes paid in 2023". I paid these 3 taxes in April 2023 for tax year 2022. Should that be entered as a deduction for my 2022 or 2023 taxes?