topic Error in State tax filing

How can I make sure Tubro Tax won't make the same error for 2019 that it made on my 2018 Oregon non-resident tax return? (Federal pension deduction code 307.)

mgnewman — Sat, 01 Jun 2019 19:05:34 GMT

check your return before filing. under a SCOTUS decisio...

Anonymous — Sat, 01 Jun 2019 19:05:35 GMT

check your return before filing. under a SCOTUS decision, you can not be taxed on a pension by a non-resident state. you entered something incorrectly or not at all.

Error

mgnewman — Sat, 01 Jun 2019 19:05:36 GMT

Error

I see what happened. Turbo Tax overstated the subtraction...

mgnewman — Sat, 01 Jun 2019 19:05:37 GMT

I see what happened. Turbo Tax overstated the subtractions on form OR-ASC-NP. They included the entire pension amount as a subtraction, but since none of the income was taxable in Oregon, it can't be used as a subtraction. I've gone through amending the Oregon return and can find nothing that I would input that would change the way this should be handled.

Turbo Tax correctly showed that this was not Oregon income on the OR-40-N, but it erroneously shows it as a subtraction on OR-ASC-NP.

I've gone through the process of amending the return, but there's nothing I can change that would alter the way Turbo Tax completes the OR-ASC-NP.

If I'm wrong about this I'd like to know the details so I can file an amended return.

Also, I'd like to know how to avoid this issue next year.

So, Turbo Tax has no way to give feedback when a state ta...

mgnewman — Sat, 01 Jun 2019 19:05:42 GMT

So, Turbo Tax has no way to give feedback when a state tax agency finds errors on the form?

Re: check your return before filing. under a SCOTUS decisio...

Anonymous — Wed, 29 Jan 2020 22:24:03 GMT

Turbo Tax for year 2019 is STILL handling Federal Thrift Savings plan distributions incorrectly for the State of Oregon. TSP is NOT taxable in Oregon yet the interview and forms do not allow for it to be taken out of the total income.

This issue has been reported for years. How do I get the program to remove TSP income completely from my Oregon form 40?

Re: I see what happened. Turbo Tax overstated the subtraction...

BME — Sat, 04 Jul 2020 20:06:02 GMT

I have a similar issue on our 2019 OR-40N nonresident return, and agree with you ... Turbotax doesn't handle this correctly. The OR instructions for Form ASC-NP, for part-year or nonresidents of OR, say: "Note: You can only subtract amounts that are included in your Oregon income. Amounts that aren’t included in your Oregon income can’t be subtracted."

In our case, we have the problem with Code 315 Interest on U.S. bonds. I get that interest on U.S. bonds is taxed by Fed, but not Oregon, fine. But we, as nonresidents, didn't receive the interest as Oregon-source income, so, properly, we didn't include it on our Form 40N line 8(S) as Oregon-source income. Since we did not include it there, the instructions are clear that it should NOT be a subtraction on Form ASC-NP. Yet, the Turbotax program includes it as a Code 315 subtraction from the Fed column, with a 0 in the Oregon column. This does not seem right, and the only way I have found to correct it is to override the program's entry in the Code 15 line of the "Other Subtractions" form, which I dislike doing.

Appreciate any comments / corrections.

Re: I see what happened. Turbo Tax overstated the subtraction...

fanfare — Sun, 05 Jul 2020 01:12:20 GMT

Intuit TurboTax is not the only tax software in the world.

Re: I see what happened. Turbo Tax overstated the subtraction...

fanfare — Sun, 05 Jul 2020 01:14:48 GMT

If TurboTax insists on subtracting it, then add it as income and it will be subtracted.