State tax filing

Yes. TurboTax will show how your federal Economic Impact Payments (stimulus) affect your state taxes on the Oregon Federal Tax Liability Subtraction Worksheet.

The EIPs are not taxed as income in Oregon. However, the payments may impact the federal tax calculations used on your Oregon income tax return. Oregon is one of six states that has a limited subtraction for federal taxes paid as part of its state income tax calculation.

Under current Oregon law, taxpayers’ federal income tax subtraction will be reduced by the combined total of their EIPs. This means some Oregon income tax filers may owe state tax on more of their income and, therefore, may have a larger Oregon income tax bill or a reduced refund. According to a report by the Legislative Revenue Office (LRO), the average impact to affected taxpayers is estimated to be $90 to $170.

Learn more at Are the federal stimulus payments taxed in Oregon?