My oregon state return was rejected and when I fixed it through my account (basically just reentered info), why did my return shrink by approx $250?

[peddiz]

There seems to be an issue with turbo tax software. The earlier calculations that their software did was a mistake specifically on Oregon Schedule OR-A. For some weird reason, the Itemized deduction was wrongly calculated which reduced the overall taxable amount by several thousands of dollars. This implies more return on tax paid in my case it showed a total refund of $909. I have filed my return on Jan 28th and got an email with a reject code REJ002. When I logged back today after they sent out an update to their software i.e., Jan 31st it automatically corrected all errors which basically corrected the deductions amount by entering the correct standard deductions. This increased the taxable income to what it should have been and my refund dropped to $351. I did refile electronically and waiting for OR to accept my return.

Surprised how Turbotax had such a major issue in their software. Looks like there are similar issues with Oklahoma and Pennsylvania State returns too!

[lmelton33]

I received this same error message. I went from 748 state refund to 19 dollars. I just want to be sure this is  an error that is being corrected and not an error that is being made causing me to lose money in my refund.

[peddiz]

I have manually verified each line from my corrected state return and everything seems to be right! I also verified with my state's tax brackets and standard deductions to make sure the math is right and it is. So rest assured this was just an error and we are now getting our refunds right!

[tbirdkeys]

Same thing happened to me.  My refund dropped from 658 to 57!!  I usually get 4 or 5 hundred dollars.  Not sure what is up this year??  

[Trav E B]

Same thing here. I had 220 coming back, now I have 170. My theory is that even though we were told that the Federal Stimulus is non taxable, it is still up to the State of residence to decide whether or not to tax it. Upon Oregon choosing to tax stimulus, as well as a few other states that thought that was ethical, TurboTax had to update its software to recalculate that. Interesting to me is how the Federal Gov. told us we would not be taxed, and then took no action to intervene when the States decided to do it anyway. Even more interesting is that there is no option to refuse the Stimulus payments, so there is no way to avoid getting taxed for it. I'm starting to wonder how much of this Stimulus was supposed to be for the Americans, and how much of it was quietly intended for other things. #typical.

[MaryM428]

The state of Oregon is collecting tax on stimulus checks when residents file their state income tax returns. To figure out how much is owed, filers should multiply their stimulus payment by Oregon's state tax rate of 8.75%. For example, a single person in Oregon likely received $1,800 in stimulus payments.