Turbotax OREGON 2021 - Please fix your program!

Forum|Forum|4 years ago
February 14, 2022
4 replies
16 views

I discovered that as of today (2022-02-14) there is a serious error in the way that TurboTax Oregon 2021 handles the effects of the Economic Impact Payment #3 (EIP3) that most of us received early in 2021. While Oregon does not directly tax these payments, it DOES affect many of our OR returns. Specifically, we must adjust our subtraction for Federal Tax Liability by the amount of the EIP3, since Oregon considers this to be a tax credit.

What this means is that if, say, my federal tax liability for 2021 from Form 1040 Line 22 is $7,500, I must reduce this amount by the $2,800 in EIC3 we received. Oregon will then allow a subtraction of $4,700 from AGI. TurboTax at this date does not take this into account.

Specifically, when we switch to Form View and look at the state form "Fed Tax Liab Wk" we see that line 10 is blank. It should read (in my case) $2,800. What I think should be happening is that this form should be pulling from "Form 1040: Individual ==> Recov Rebate Cr" line 13 plus any amount in line 14 (which should also be on the 1040 line 30). What is PROBABLY happening is that the state worksheet line 10 is pulling from 1040 line 30 only.

I corrected my return by right clicking the cell for line 10 (on the state worksheet), choosing "Override" and entering the correct amount manually.

We shouldn't have to do this. We're not getting the product we paid for.

Please fix this!

PS I'm pretty sure they made the same mistake last year too, causing a bunch of folks to be unable to efile.

RobertB4444

Level 15

This is a known issue in TurboTax. The fix should be out and in the software by February 17th.

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Jeanno25

Level 2

I reviewed my return after the federal tax subtraction was corrected. The amount is still incorrect. It appears to have included the economic stimulus but does not include the nonrefundable child tax credit as stated in the instructions Oregon tax return Form OR-40 instruction guide. This results in a decreased federal tax liability subtraction.