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Level 1
posted Mar 29, 2025 9:55:11 AM

Calculation Error in Oregon State tax module

This is an unresolved calculation error that has been ongoing for at least 6 years now in the Oregon tax module.  It involves the incorrect exclusion of ordinary income from Oregon taxes during a calculation of federal pension exclusion.

I am retired from federal service, and I have a federal pension. None of my federal pension is taxable by Oregon as I am not an Oregon resident.  However, for a few years, I did work in Oregon, and now in retirement, I have a job in Oregon.  When I input the correct information about my federal service time and my current income, the tax module incorrectly excludes a portion of my current income from Oregon taxation, resulting in an underpayment of taxes (which incorrectly says I'm getting a refund).  When I try to fix the incorrect calculation, TurboTax reports it as a problem and won't let me fix it or submit the proper form.  

 

In past years, I've gotten letters from the State of Oregon requiring me to make the correct payment for additional taxes owed.  This turbo tax calculation error needs to be fixed.

Here is the token:  1363071370-72333778

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1 Replies
Level 1
Mar 29, 2025 10:03:36 AM

The only way I can get the program to calculate correctly is to alter the dates of my federal service so that no pension income is excluded from Oregon taxes.  Otherwise, the program tries to exclude my current earned income as though it was pension income earned in Oregon, when in fact it's earned income.