I understand the state of oregon that we will be taxed at 8.5% income tax on our stimulus payments - where do I input this?

[MaryM428]

When you do your federal income tax return, you will complete the Recovery Rebate Credit worksheet.  That will put the correct figures on Line 30 of the 1040 and calculate the amount of stimulus that you have already received or will receive as part of your 2020 income tax return.

That amount will flow to your Oregon state return and be used to calculate the income tax that you will pay to Oregon.

Here is how you will enter the stimulus payment on your federal return:

At the top of your tax return select Federal Review

That will take you to this screen where it asks if you have already received your stimulus payments.  If you received the first or second payment already, then select Yes and fill in the information.  If you did not receive any payment select No.  If you received the first payment only, fill in that amount and put zero (0) for the second payment.

When the screen is correct, you refund will be adjusted for the amount of stimulus payment that will be added to your 2020 refund.

[Linus3]

So, where does this income show up in my State Income Tax forms?  I can't seem to find where this has been added to my Federal Adjusted Gross Income.  Or how else is it handled?  

[MaryM428]

Your federal tax questions will ask if you received or will receive a stimulus payment.  TurboTax will then transfer those amounts to the Oregon tax return and it will be included in your Oregon income.  

It will not be added to your Federal AGI.

TurboTax will then calculate your Oregon tax payment based on your earnings and your stimulus payments.  

[Anonymous]

I do not see the "Did you get a stimulus payment" on the desktop application.  Can you please advise where to input this information?

[JotikaT2]

Log back into your TurboTax program on your desktop.

1. Select the Personal tab.
2. Select Federal Review
3. You will see the following screen titled Let's make sure you got the right stimulus amount

Select Continue on this page and you will be prompted to enter the amount of the stimulus payments you received.

If you did not receive the entire stimulus payment you were entitled to, your tax return will calculate the Rebate Recovery Credit you are entitled to, if applicable.

See the following link for additional information on the credit and when it applies.

Recovery Rebate Credit eligibility

[Anonymous]

I have the Mac Desktop version and have gone through the entire Federal Review dialogue and the "Let's make sure you got the right stimulus amount" does not appear.  

[DaveF1006]

In your Turbo Tax Program, look for the search button with the magnifying glass. Type in the word stimulus and then select the jump to stimulus link that appears in the search result.

[SweetieJean]

It's 8.75%, not 8.5%.

Stimulus checks aren’t tax-free for Oregonians | KOIN.com

[ClarkH21]

I have gone through all of the review of the federal return and answered the questions regarding the Stimulus payments.  My adjusted gross income on the Federal forms is exactly what shows up as income on the Oregon state form 40.  It appears that the $1800 was not added to my taxable income for Oregon automatically by Turbo Tax.  Is that adjustment to taxes handled in the background on the Oregon state forms to arrive at the state tax liability, or did the transfer from the federal forms to the state form not work as intended?

Clark

[Aldona123]

Dear Expert,

Line 30 on the Federal Return captures the amount of stimulus that YOU DID NOT GET but were entitled to.  It is the credit that recovers the stimulus payment for the taxpayer.  However, those of us living in Oregon need to pay taxes on the amount of stimulus we received and that amount is asked on the Federal side (as per your screen shots) but not captured and transferred to the Oregon return.  In essence, we need an addition on the Oregon side to add the stimulus to our AGI.  Currently Turbo Tax is not doing this automatically, and there is no category under the "Other Additions" tab on the Oregon side that can be used to capture the stimulus amount we already received.  Unless we have to enter it as though it were a Federal Tax Refund.  Any suggestions?  I think the software needs an update here.

[WendyN2]

Oregon and Stimulus Checks - How To Report Income

I hope this helps as you are in a very unique situation. 

[Linus3]

Actually, I believe I now understand how this is managed by TurboTax on the Oregon return.  Line 10 on the OR-40 represents subtractions from federal tax liability applied to Oregon income.  It's brought over from the federal for 1040.  There is a worksheet that supports this amount and the Stimulus amount received (as input in the Federal Review section of the software) is used to reduce the subtraction.  This means that income will be higher by the stimulus amount than would ordinarily subtracted from it.  Thus, the stimulus shows up as increased income for the Oregon return and taxes are calculated based on that higher amount.  I think everything is correctly handled by TurboTax.

[JamesG1]

Stimulus checks are, indeed, taxed by the state of Oregon.

[Aldona123]

After studying the Oregon Pub 17, I see that the stimulus is considered a reduction in the Federal Tax Liability subtraction on the Oregon side.  It appears in the OR40, line 10 (Subtractions), the federal tax paid in 2020 less $2400 (or whatever the stimulus payment #1 was).  You have to compare your Federal Tax (line 16 on 1040SR) and all Federal credits with OR40 line 10 to see what TurboTax did with the stimulus payment.  Interestingly TurboTax did not include the payment #2 (perhaps because most will have received this stimulus in 2021).