Third stimulus check not carrying over to Oregon state form--how to fix?

[jrbroach]

In OR, the 3rd stimulus payment should reduce the federal tax deduction. Currently, it's not transferring over to the state worksheet (Oregon Federal Tax Liability Subtraction Worksheet). There doesn't seem to be any way to manually correct the issue, and it's causing my state tax liability to be underestimated.

Is this a known bug that will get fixed, or is there any other workaround? I've tried deleting the relevant forms and re-entering the Fed stimulus info, but nothing changed.

Thanks!

joe

[ZoltanB45]

I know that was the case in 2020, even if you did not receive both stimulus checks that year, but have not read anything on that policy applying to 2021 and the 3rd stimulus payment. If that is indeed the case, we will have to make updates. I would hold off on the Oregon return until further updates are made. 

[jrbroach]

Thanks for the response. It does seem to be a bug. There's a worksheet to calculate the Fed deduction that includes the stimulus/rebate amount, and that shows up in Turbotax. But, the stimulus payment amount isn't being filled, even though I entered it in the Federal section. Another user has documented the issue here.

What's the best way to follow updates to the Oregon state product?

Thanks!

joe

[ZoltanB45]

The federal tax subtraction limit is $7050, $3525 for Married Filing Single. Is there a chance that your federal tax was greater than either $7050 or $3525 (MFS) to the point that the Stimulus reduction just brought you back to the maximum deduction allowed? In that case you would not be able to see the difference.

[jrbroach]

Thanks again for replying! The stimulus payment amount is literally missing on the state worksheet, as shown in the image below. I did try deleting all the related forms and re-entering the stimulus amount in the Fed tax tool, but it still doesn't appear. And, no, our Fed tax isn't so high that it wouldn't matter.

The worksheet where the issue shows up is: Oregon Federal Tax Liability Subtraction Worksheet 2021

Best,

joe

[AmyC · Accepted solution]

Yes, it is not showing.  

Edited 2/14/2022 (7:16 PST)

Please check back after Feb 17, 2022 for product updates. Please go through your Oregon return again from start to finish, and run final review.

[joannehodor]

My return was rejected because of this issue. There is no update that it has been fixed. It says check back on or after 2/17. Its after. I downloaded the OR updates, went through it again, but see no changes in the amount or the printed sheets. Has the update been made? I don't want to go through rejection again. Please give a more explicit message. Either the change has been made or is still being worked on.

[JBParsons]

It is now the 18th and the calculation error has not been fixed. Is there a new estimated date?  

[Katina S]

Thank you for your patience while we worked to fix this issue. Please attempt to refile your taxes as this issue has been resolved.

@JBParsons

[jandsherree]

I downloaded the update, ran checks on my return, and this still hasn't been resolved. My stimulus payment is still not being subtracted. I have spent hours going through the software, and I cannot find anywhere to even enter my stimulus check. Please fix! I'm frustrated that I have already paid the filing fee, and this is not being resolved.

[AmyC]

You state that you have not entered your stimulus. That is different. My program is showing the stimulus on line 10 as it should. You need to enter your stimulus. Follow these steps:

1. Please go back to the federal section.
2. Go to Other Tax Situations
3. Click Done with Other Tax Situations on the bottom right.
4. Answer the stimulus question.

This will flow to your OR return.

@jandsherree

[jandsherree]

I just tried this, and it doesn’t take me to a stimulus question. Step 3 takes me to a screen titled, “We’re Ready to Review Your Federal Tax Return.” There are two options with that screen, and neither takes me to a question about the stimulus. The question asks, “Have you entered all of your tax forms or papers?” If I select “yes,” the it take me to a summary of my taxes. If I select “no, I have something to enter,” then it take me to a list of forms. I’ve gone through it over and over, and it doesn’t include a place for the stimulus.

[jandsherree]

***This only impacts people who made less than the cutoff for the 3rd stimulus in 2020, but more than the cutoff in 2021***

This response only works if you made less than 160k (I believe this is the number, married filing jointly) in 2021. If you made more than that, it will not ask you about the stimulus. This is a bug in the program if you live in Oregon where that information is needed for the Oregon return. The 3rd stimulus checks were based on 2020 income before 2021 income was known, so it is possible to have qualified for and received the 3rd stimulus check while having a 2021 income that would not qualify, and the program does not allow for this. Now that I finally understand what the program error is, I found a work around for this:

1. Subtract income off of a W2 to bring total income below the income restriction

2. Go back and answer the stimulus question that is now available due to lower income

3. Correct the W2 before filing!!

[BadgerPDX]

Although the solution suggested above (reload TT after Feb 17) might solve the problem for most people, there is definitely still a bug in TurboTax. 

The situation described by jandsherree is a bug and I encountered it, too.  The solution/work-around they provide does solve the problem, but this is quite a clunky solution for software that I expect to just work.

Thanks, jandsherree! Hopefully someone from TT (AmyC?) will spot this response and feed this back to the developers.

[AmyC]

@BadgerPDX I am looking at my desktop PA and the forms are carrying the stimulus over and calculating correctly using the lower income. The stimulus goes to the worksheet and subtracts out as it should.

@jandsheree super workaround for the higher income.  Thanks for letting us know to you both!