Oregon political tax credit issue

[gemlilros]

Turbo tax is not changing my Oregon refund for our political tax credit of $100. 

We are filing married with joint return and only have $55,000 income, so we definitely qualify.

Does anyone have any insight into this problem???   Thanks!

[HelenC12]

I tried to recreate your issue in TurboTax. 

• On the Take a look at Oregon credits and taxes screen, I scrolled down to Other credits, Political Contribution Credit and On the Political Contribution Credit screen, I was able to get the credit.

Please delete the state and re-enter the credit.

• How do I delete my state return in TurboTax Online?
• How do I clear my state return in the TurboTax for Windows software?

. NOTE: 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.

[gemlilros]

Thank you for your answer.  I deleted the Oregon return and re-entered the information, and put the $100 in the Political Tax Credit place, but my refund still didn't change.  (We should be getting the full $100 back in our refund under Oregon law.)  Our adjusted gross income is under $10,000 as we are retired, with a small part-time job on the side.  Any more suggestions?  🙂

[JohnW152 · Accepted solution]

Since your adjusted gross income is below $10,000, it's possible that you don't have a tax liability.  If that's the case, the credit may not produce a tax benefit.

It's worth pointing out that the Political Contributions Credit on line 24 of Form OR-40 is a nonrefundable credit.  This means that it can be used to offset the tax liability shown on line 22 of your state return, but if your tax liability is zero, it won't be used, at all.

[gemlilros]

Oh my, I do believe you are probably right.  We have never been in this tax category before, so it is unchartered territory for us.  Thank you for your insight!

[KirklandSignature]

TurboTax really mangles the management of this one. It doesn't auto-remove this for people over the income threshold either.