EIP and impact on state taxes

[mikehd]

Hi all,

I'm looking for a way to see how the EIP payment I received in 2020 impacts my state income taxes. I'm an Oregon resident, married/jointly, no dependents.

Is there a way to use turbotax to see the impact? The Oregon Dept of Revenue states it can increase your state taxes; I'm just curious as to the impact on our situation.

Oregon Economic Impact Payments 

thanks,

[ErnieS0 · Accepted solution]

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?

[mikehd]

Perfect! That's the worksheet I was seeking.

[David 155]

I need to file for my son he never got any of them checks

[JohnW152]

@David 155

For your son to claim the stimulus (Recovery Rebate Credit) in TurboTax Online, he should open the TurboTax program and:

1. Sign into his account, and click continue from where you left off.
2. Click Federal in the left panel, then click Federal Review at the top.
3. On the Let's make sure you got the right stimulus amount page, click Continue.
4. Go through the interview
5. The TurboTax program will compute the stimulus amount you're entitled to, if any.
6. Any stimulus amount you'll receive on your return will be displayed as a credit on line 30 of Form 1040.

Bear in mind that, if your son was claimed as a dependent on someone else’s return, he won’t be eligible for the stimulus.  They’ll get his stimulus amount since he was listed on their tax return.

[Pat117]

This worked fine for 2020 filing, at this time I do get the same on my 2021 form.

I would expect line 10 of the worksheet: Economic Stimulus Payments(s) and Recovery Rebate Credit to bring over from the Federal tax forms the EIP (Letter 6475) payments noted. They did not? Do I need to override the blank line?

[BillM223]

We are looking into the issue of TurboTax not bringing the EIP actually paid to the taxpayer over to the federal tax liability worksheet in Oregon.

@Pat117