To cut to the chase, I think at least some of this is not correct, a TT help item. Specifically, #6 below is questionable, when filing the Oregon OR-40-N (non-resident) return:
Political Contribution Credit
Enter your total political contributions, up to $50 ($100 on a joint return). The contribution must have been made during 2020, and it must have been a donation of money to any one of the following:
- A political party. Political parties can be national, state, or local committees of major political parties. Oregon also allows a tax credit for contributions made to minor political parties that qualify under state law. You may call [phone number removed] to see if a particular party qualifies.
- A qualified candidate (or the candidate's principal campaign committee) for federal, state, or local office. To be qualified one or more of the following must occur in Oregon during the same calendar year that your contribution is made:
1. The candidate's name must be listed on a primary, general, or special election ballot;
2. A prospective petition of nomination must be filed by or for the candidate;
3. A declaration of candidacy must be filed by or for the candidate;
4. A certificate of nomination must be filed by or for the candidate;
5. A designation of a principal campaign committee must be filed with the Oregon Secretary of State's Office.
6. A political contribution credit is not allowed if your adjusted gross income on line 8 of Form 40 exceeds.
* $150,000 for married /RDP filing joint filers; or
* $75,000 for all other filers.
The Adjusted Gross Income is not on Line 8 in this Form OR-40-N and since my wife is the only one with income from her job in Oregon, they should not be looking at our combined AGI since none of my income comes from anything to do with Oregon (we live in, and I work only in, Washington state). Her income falls well below these thresholds as noted above. If they are looking at our combined income (AGI), which they should NOT be doing (and that appears to be Line 29, not Line 8), then yes, we exceed married/joint filers.
Question: Can someone tell me how this works? Last year, when filing 2019 OR-40-N return via TT, it let me submit this COPE deduction ($96) as a political contribution (our combined AGI was more last year too) but TT won't allow it this year. Why, what changed or is there a defect in the software for OR-40-N?
The Tax Situation Details -
We are non-residents who live in Washington state but must file a state return with Oregon because my wife works there. Her union, SEIU Local 49, collects involuntary deductions from each paycheck for their COPE Fund. This is a forced deduction from each paycheck, not voluntary, (totals to $96 each year), and they've been doing this for years. In the past, they instructed their members that this was allowed by the state as a political contribution tax deduction. As recently as just last year (2019), I filed in:
OR-40-N
Standard and carryforward credits
50. Total standard credits from Schedule OR-ASC-NP, section 5.................................................................. 50.
The TT worksheet shows it as:
Section 5: Standard credits (codes 802–815)
5a. Code 809
Enter total on Form OR-40-N, line 50; or OR-40-P, line 49
It's the same code this year, but Turbo Tax keeps complaining with:
Check This Entry
Other Credits Statement: Political contribution credit should not have a value. Adjusted Gross Income is too high.
Political contribution cr . _96. __ << They want this at $0 in order for it to pass the check process
I've explained it with a note as:
"SEIU Local 49 COPE Fund (political contribution tax credit)" $96
Btw, our Adjusted Gross Income is less this year than last year and TT had no problems letting this pass the check process last year. As I recall, it sailed right through, no problems.
So now I'm stuck, can't proceed. Without this deduction, I owe them money, on top of what they've already collected all year long. Is there something wrong with Turbo Tax? Why is this blocking this now when it's never done this in the past and how do I get past this so I can proceed and file without potentially getting audited? This has never problem for at least the past 5 years, if not more, with submitting COPE as a political contribution tax deduction, with they state of Oregon.
I appreciate any assistance with this so I can get this finished, filed and be done with all of it. Thanks!
