Accrued Market Discount from the 1099-B should also be subtracted from Oregon income, but TurboTax does not pick this up automatically and does not seem to allow me to force a change to the code 315 subtraction.
Follow these steps in TurboTax Online:
You'll be able to see the adjustment in you state tax summary in TurboTax Online:
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Thank you for the reply, JohnW. However, it’s not the 1099INT causing the problem, but rather the market discount reported on 1099B. There is no screen associated with the 1099B to adjust state taxes for “unusual situations”. The Federal return correctly moves the market discount to be reported as taxable interest, but the Oregon state form only deducts the coupon payments (it should be also deducting the market discount).