For Oregon 529 contribution there is a tax credit of $300 available, but turbo tax is only allowing me a credit of $86. Any idea why?

[zzdr]

I'm married filing jointly

[SweetieJean]

Your AGI determines the percentage of the contributions you made during the year that you may claim,
up to the maximum of $150 ($300 if married filing  jointly). 

Credit percentage from Table 12 of Pub OR-17 (2020)

AGI

$0- 30,000   100%
30,001-70,000   50%

70,001- 100,000  25%
100,00- 250,000 10%
250,001+  5%

[AmyC]

The law changed for 2020 from a deduction to a credit. See the full details at Education Savings Credit FAQ - State of Oregon.

@SweetieJean is right again

[zzdr]

Yes, that is all correct.  I should be eligible for the $300 credit as I contributed $6k and make over $250k.  I should get 5% x $6000 = $300.  When I put in my numbers, Turbo Tax fills in $86 for my credit.  Something not adding up.  Thanks

[zzdr]

Yes, that is all correct. I should be eligible for the $300 credit as I contributed $6k and make over $250k. I should get 5% x $6000 = $300. When I put in my numbers, Turbo Tax fills in $86 for my credit. Something not adding up. Thanks

[ThomasM125]

It is possible that the credit is limited to your tax. You can view a summary of tax return while working in the online version TurboTax to verify this as follows:

1. Tools (left side of the menu bar)
2. Tax Tools 
3. View Tax Summary

You may need to be in the state program before you do the routine to have the state tax summary show up, as opposed to the federal tax summary.

[zzdr]

I appreciate the input, but I don’t think that’s the issue. My OR tax is substantially greater than $300. Any other thoughts?  Thanks 

[AmyC]

Income over 250k is 5% x $6,000 = $300. Income tax liability over $300 so full amount should be a credit. Very straight forward but  you aren't getting there. You are using the online version. Maybe some data got stuck in the program?

The are two places in the program that mention the 529. The first is Here's the income that OR handles differently. Under Investments, is has 529 carryforwards. That should not be affecting your computation. Any chance there is something there making up the rest of the credit?

If not, follow these steps:

1. delete your entry for $6,000 in the actual 529 entry on Take a Look at OR credits and taxes.
2. Delete the form Other Credits:
   1. How to Delete 
   2. Log out of your return
   3. Try one or more of the following:
      • Don't use Internet Explorer.
      • Clear cache and cookies,
      • Sign in using a different browser.
      • Sign in using a different device.
   4. Log back into your return.
   5. Enter the 529 again.