BillM223
Expert Alumni

State tax filing

May I assume that you are using the Online product? 

 

I doubt that the problem is the OR-40-P in 2019. Instead, it looks like TurboTax is pulling the entire 2020 taxes paid for 2019 for all states without regard to which states they were for.

 

OK, the way to workaround this is as follows (it won't be pretty):

 

1. If you have finished entering everything into the federal and state return, look at your state return. Can you tell how much difference this $852 made to your Oregon taxable income? It may have decreased it by the full $852, or there may have been some limitation based on Schedule OR-A.

 

2. Once you have determined the impact that this erroneous deduction had on your Oregon return, then restart your Oregon interview.

 

3. You will see the screen "Here's the income that Oregon handles differently"

 

4. Under "Misc adjustments", click Start for "Other Additions".

 

5. The next screen asks "Do you have additions to federal income?". Answer YES

 

6. On the next screen "Your additions to federal income", check the box at the bottom that reads "If you have an addition to Oregon income that you haven't already enter, check this box and click continue."

 

7. The next screen is "Other Additions Statement". Go to the very bottom and on the last line that reads "Enter other additions description below", add code 136, then "Adjustment for OR taxes paid for 2019" and "852" in the Oregon column (right hand column).

 

This will carry the $852 to line 8 of form 40, increasing your Oregon taxable income by $852. It will not change the entry on line 5 of form OR-A, which will still be the wrong $1,848, but at least, your Oregon state income will not be correct.

 

Be sure to document what you did because using code 136 really isn't the right code, but if we don't put in a valid code (there doesn't seem to be one for "other"), then your return won't pass the state review, and you won't be able to e-file.

 

Let me know how this works out.

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