Linda, I did contact support agent at TurboTax (Case [removed]), but after almost an hour, the call seemed to abruptly end. I decided to reply to your post and provide as much information as possible, as well as an update on my course of action.
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I had forgotten to include a 1099-misc for $1,200 when I submitted my 2022 returns last year. In January, I used TurboTax to file a federal and state amended return for 2022 to account for this income. This amended return appears to be the basis of the state's decision. However, it was difficult to fully understand the root of the judgement. Here's a quote from the Notice of Deficiency:
We adjusted your Social Security subtraction to include only the taxable amount on your federal return (Form 1040, 1040-SR, 1040-SR-SP, or 1040-SP line 6b). Oregon doesn't tax any amount of your Social Security, Railroad Retirement Board, or railroad unemployment. (ORS 316.054)
The adjustment amount was $2,900, but despite reading through the document several times, I was unable to find the origin of that amount until I read through 2022 Publication Form OR-40 Instructions. I found the amount in "Table 5. Federal tax liability subtraction AGI phaseout". Still, I have no idea why that was used in reference to my reported Social Security income, although there is this paragraph adjacent to the table:
Are you amending your 2022 return? Usually you can't change your federal tax subtraction on your amended return. See the “Federal income tax liability” section in Publication OR-17 for more information before making changes to this subtraction.
As far as I can tell, there was no change whatsoever to this entry that would've triggered the deficiency.
I decided to totally redo my 2022 returns, again using the desktop version of TurboTax. This time I included the 1099-misc that I had originally forgotten. Accounting for this change in income and a slight penalty, I came up with virtually the same result my amended return reported. Based on that test, I decided to appeal the state's decision and requested a conference with their agent.
Thanks for your concern.
