OR-ASC can't add OID as tax exempt?

[achillez]

This is a two part question. First in wages & income > 1099-OID.

I select 1099-OID. This is for a US treasury bond and it's tax exempt from Oregon.

Enter in the details and it has a set of radio buttons. One of the options is to say it's a special case and is tax exempt in the state. It has a list of states and OREGON ISNT LISTED. 

There seems to be no other way to force Turbo Tax to add this 1099-OID as tax exempt for Oregon. Further, I can't find the Int/Div subtraction worksheet for OR-ASC to override the final subtractiona amount. 

So is Turbo Tax just bugged here or am I doing something wrong? 

thanks! 

--

Update: first part realized I was bugged. the OID had box#8 selected (treasury obligation). As a result Turbo Tax auto-subtracted that from the income that was put into OR-40. 

I still don't know where you find: (1) the worksheet that shows OID being subtracted for OR-40, (2) more important the OR-ASC worksheet that shows where the final subtraction number comes from. 

Any help would be great! 

[baldietax]

I don't know OR state tax program but I don't think the state programs provide a breakdown of the subtractions/additions in your state return from Treasuries/Munis etc.

I make a spreadsheet offline with what I know these to be based on my 1099s and reconcile to the final numbers on state return.  Usually any discrepancies are input issue.

[achillez]

Thanks for replying. Yes, this is what I did as well. The problem is it won't concile. I'm roughly $300 higher than the subtraction that Turbo Tax provides. I've spent literally 2hrs trying to reconcile this. It's driving me somewhat batty 😉 

[baldietax · Accepted solution]

Ah yes it can get frustrating and that double-click on state into the details would be great...

Have you also tied out Schedule B income on 1040 Lines 2b/3b...

My checklist of gotchas:

Have you taken all the muni sources into account on 1099-INT (Box 3 less Box 12), 1099-DIV (US Gov Obligations $ amount of Box 1a that you provide), 1099-OID (Box 8 less Box 6).

Accrued Market Discount (AMD) from Box 1f on 1099B on Treasuries will get adjusted from Schedule D to Schedule B but is not subtracted from state taxes in Turbotax.

Bond premium adjustments (1099-INT Box 12 / 1099-OID Box 6) reduce the taxable Treasury income.

Accrued interest adjustments on 1099-INT for individual bonds don't work if you have multiple income sources on the 1099 (i.e. Box 1/8 in addition to Box 3) it gets pro-rata'd across all the boxes, you have to split up the 1099.  You may have the same issue with 1099-OID if you have any premium reported in Box 6 (or Box 10) and multiple types of OID in the same account (e.g. Munis and Treasury Strips).

Some brokerages report state-exempt Agencies (e.g. FHLB) in Box 1 instead of Box 3.

And make sure none of the 1099s in Federal return are showing "Needs Review".

[achillez]

Thanks, I missed some of those "less" items like the "less box #12". I'm now very close, just off by $8.01. I'm not sure where that's coming from. Are there any other special less boxes, or other areas that could reduce the subtraction in OR-ASC BOX B2?  

Side note: I really wish they had a breakout to show how BOX B2 is being added. Seems like a critical thing for Oregon filers. 

[baldietax]

if you've tied out the income lines on your 1040 then you will have captured all the premium adjustments which would apply to Fed also (you should see "ABP Adjustment" on Schedule B for all the premiums), also any input errors.

that's all I can think of but if you have an oddball amount that doesn't tie to an obvious box amount, I would focus on any 1099s with mixed Treasury and non-Treasury income, double-check for adjustments that need to be split up, or the 1099-OID which doesn't have Treasury specific boxes for the premiums.  Whenever I've been left with an odd mismatch it's something like this.

if you're on desktop then Forms mode is pretty handy to go through the 1099s worksheets quickly, or with Online the PDF with "All Forms and Worksheets".

[achillez]

Thanks, yes the ABP adjustments add up to match my number I calculated. So it seems there is some other "less" from subtraction that I'm missing to account for the $8.01 total difference. I also confirmed the treasury bond/interest in the 1099 forms that are generated matches mine. Really not sure where that last difference is coming from. Also tried searching for $8.01 and no luck :(

Not sure if foreign tax or other things come into play here. I assume not, but any other ideas would be awesome 🙂 

[baldietax]

shouldn't be foreign tax etc.  I don't know OR state taxes if there is something other than Treasuries in your return that would be Federally taxable but subtracted for State; munis are generally not Federal taxable and then out-of-state munis are an 'addition' to income for state tax.

did you tie out the 1040 lines 2b & 3b - if you agree those then you have right income with premium adjustments from the 1099 boxes, and the state tax diff must then be supplemental info that doesn't affect Fed return - e.g. US Gov Obligations on 1099-DIV, or the issue with an adjustment getting mixed up between Box 1 and 3 that doesn't change the Fed outcome.  If you have the same $8.01 diff on the 1040 then it's something do with the 1099 boxes.

keep in mind you may have a couple of different +/- errors that net to 8.01 not a single 8.01 error

one thing to try if you have a few different 1099s with Treasuries is to delete the 1099 or zero out the Treasury amounts, and then see if you agree that subtotal, to try and narrow down which 1099 is causing the discrepancy.  deleting and reinputting 1099s can sometimes clear up issues you're missing, especially if they were imported.