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I entered the $70 of 2022 Portland Arts Tax which I paid into "Federal Estimated Taxes" using the Turbotax pop-up Local Tax line specifically for this city tax. Tax is NOT based on income, just charged per person. Since Standard deduction was better than my Schedule A deductions, I took Standard deduction (thus this tax did not effect my federal taxes).
I do have enough Schedule A deductions for my Oregon State taxes. However, rather than appearing as Other Tax ($70), it is showing up as "Other State And Local INCOME Tax" line as $140. Since I am already over the limit of $10000 for the sum of "Property Taxes" and "Other State And Local INCOME Tax", the $140 (which is wrong amount) is dropped anyway. I should get the $70 deduction showing up in "Other Tax", which should NOT count towards the $10000 limit.
Therefore, my $70 deduction is missing from Turbotax Oregon form.
Is this a Turbotax glitch? If yes, how to get it fixed?
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Figured out why it said $140, not $70. So that's solved. However, it's still on the wrong line and I'm not getting my deduction. HELP!
@NEILLEFK glad you figured out the $140 as that was throwing me. Yes it should be deductible. I don't have access as I don't work for TT
There is a place during the federal interview that is for this tax under local taxes on the locality drop-down (near the bottom) is that where you entered it under? If yes, it should flow correctly.
If not working, I may be able to send to admin at TT.
Or maybe treat it as a donation as that is truly what it is as it's a fixed, not an income tax.
Maybe remove it from the Federal interview so it's not added back minimally. It is deductible as a Oregon Itemized deduction, as it's not paid to Oregon.
Let me know if this works.
"You may deduct certain state or local income taxes or foreign
income taxes you paid during the tax year, such as income
taxes paid to a state other than Oregon, mandatory contributions to certain employment-related programs in other
states, and taxes on real or personal property located in the
United States that are based on the property’s value (known
as ad valorem tax). Income-based taxes paid to a local government within Oregon, such as Portland’s Arts Tax, may
be deducted because they’re not paid to the State of Oregon."
Hi, yes, I did enter the $70 tax during the federal interview on the locality drop-down. Portland Arts tax is a drop-down choice. If you're able to send to admin at TT, please do so.
I'm hoping that TT will get this fixed promptly. However, if not, your idea of deleting it from the federal interview and listing it as a donation sounds that it should be a great workaround. Before trying that, I sure prefer that TT will fix their error.
Thanks.
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