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Level 1
posted Feb 15, 2022 7:50:27 AM

Oregon 2021 Taxes - Federal Tax Liability Deduction Error

The Oregon state income tax program appears to have an error in the calculation of the Federal Tax Liability deduction.   The third economic impact payment is not being subtracted from the Federal Tax Liability when the amounts are entered on the Federal return.   There does not seem to be a way to override the worksheet for this deduction.   

 

Is this a bug in the program or is there another way to get the info into the state return?

0 17 2157
17 Replies
Level 2
Feb 15, 2022 10:10:18 AM

Right click on the cell for line 10 and choose "Override"

This worked for me on Deluxw 2021 Desktop (Winsdows).

Level 2
Feb 15, 2022 10:25:14 AM

My 2021 Oregon State return was rejected. Is it true that there will be a Turbotax software fix downloaded on Thursday, February 17th so that the State of Oregon will accept my return?

Expert Alumni
Feb 15, 2022 12:55:45 PM

@JT503 That is the date we were told as well.

Returning Member
Feb 17, 2022 7:09:39 AM

I waited until today, reran the state numbers online and nothing changed so I resubmitted. I’m worried it wasn’t actually fixed though because nothing changed! Really frustrated with turbo tax this year over this. I even called and no one could answer if it’s now corrected and ok to submit even though the refund didn’t change. 

New Member
Feb 17, 2022 8:26:36 AM

I also am having issues with this. I logged in this morning (the 17th when they said it would be fixed) and attemped to fix it and re-file, but then I got another email saying it was rejected. Seems like they didn't fix the glitch. 

Returning Member
Feb 17, 2022 8:32:25 AM

Mine also got rejected again! Beyond frustrating. I just want to know when I can refile. Can’t they send a email when it is actually fixed? How do they not have the professionalism to let us know they didn’t fix it by the date they gave? It makes zero sense. Can’t get through to customer service and my notice says check back on the 17th. So helpful. Will we have to mail it in? I hope not that will take weeks to get our money. Really considering never using turbo tax again it’s now been 2 weeks I’ve waited to get my Oregon return completed 

Level 2
Feb 17, 2022 12:56:34 PM

Mine Oregon return was rejected today as well. My Fed return is being processed and my son already received his federal refund, however his state return was also rejected. Dear Turbotax, this is not good. When are you going to have this resolved once and for all? 

Returning Member
Feb 17, 2022 1:19:23 PM

I agree. It’s been a week for mine and still not fixed. I called today and confirmed it’s not fixed and no ETA on when it will be done. 

Level 3
Feb 17, 2022 2:26:12 PM

Regarding Overriding the line on the OR federal deduction worksheet ... 

I don't think that works if you are e-filing your OR tax return.

 

I changed my agi on my federal info to Force turbo tax to ask for my stimulus check to compute the Recovery Rebate, then I changed AGI back to the correct amount and continued to my OR tax return.  My OR return federal deduction worksheet had the stimulus check amount correct and my fed deduction correct, but my OR return e-file was still rejected ... this is all after the 2/17/2022 OR & federal updates.

 

It is possible the 2021 OR fed tax deduction works properly as of 2/27/2022 if your AGI is low enough to trigger turbo tax to collect the info on your stimulus check within the federal module.  I help a friend with their taxes and their OR fed tax deduction worksheet seems to be working ... not willing to test with an OR e-file yet though.

 

So to Turbo Tax Software people, check this if you haven't already.

Returning Member
Feb 17, 2022 6:30:06 PM

Do other companies have this issue like H and R block? If turbo tax isn’t in a hurry to address it I want to use someone else next year for sure. I know many people with this issue and it’s frustrating to have no ETA. 

Level 3
Feb 17, 2022 8:09:03 PM

Very frustrating, but at least they have stopped anyone else from filing Oregon until they figure it out.

Returning Member
Feb 18, 2022 8:43:50 AM

I called turbotax.  I was told it would be fixed on 24th.  I did my mom taxes using freetax usa.  State return was accepted.  Because of this and the fiasco last year of not getting the stimulus money right away, this will be the last year I use turbo tax.  Going to free tax usa.  Its cheaper.

Returning Member
Feb 18, 2022 8:45:19 AM

The 24th?!? That’s outrageous and why is the notification not updated. So unacceptable thanks for the recommendation!

Returning Member
Feb 18, 2022 8:49:43 AM

Who knows if that is the truth. Maybe the guy was just throwing out a date. The day I called, which was on the 17th, the qebsite still said the 17th when he was telling me the 24th. I asked turbotax for a refund for my state taxes. They said they do not issue refunds due to a tax return being rejected. I said it's a problem in your software, not a mistake on my end. I contacted the bbb.  

Returning Member
Feb 22, 2022 1:04:51 PM

This is definitely a software issue on Turbo Tax.

 

I cannot believe a company the size of Intuit is leaving everyone in the dark as to when this issue will be resolved.

 

What really bugs me is Turbo Tax already charged my credit card for a service they did not provide.

 

 

Returning Member
Mar 28, 2024 10:25:38 AM

2023 Turbotax home & business for OREGON state still asks for the wrong info on prior year Federal refunds and computes it incorrectly.  relevant statute ORS 316.680 and 316.165.  OR Pub 17, Addition Code 109 says to enter only the tax benefit, not the refund $.  So yes, Turbotax still does it wrong.  Do it by hand and enter the correct amount.

Expert Alumni
Mar 28, 2024 4:20:20 PM

I am reviewing your comment and the statutes. However, we do state that only amounts that would affect your tax liability should be entered. If you click the Learn More button, you get the full details. 

@dwk20