Non resident Oregon tax

[AH15]

Hi,

I live in Washington State and work from home. My paystub goes to our main office in Oregon. I receive all my Oregon tax back every year when I filed Non-resident taxes. 

I had a mistake on my 2019 tax return and I needed to do amendment Oregon taxes in 2020 - I receive two tax return checks from Oregon last year - one for 2020 and for 2019. 

This year when I am filing my taxes, Turbo tax considers my 2019 tax return from Oregon taxable for Federal return. It doers it correctly for 2020!

How can I fix this?

Thanks

Thanks

[DavidD66]

If a state tax refund is taxable, the year in which it is included as taxable income is the year it was received.  If you itemized your deductions in 2019 your refund may be taxable, and if so it would be taxable in 2021 - the year you receive it.

[AH15]

Thanks David,

The issue is the state tax refund is not taxable for me since I itemized my taxes every year and pay way more than 10,000 of taxes for my real state which is maximum anyone can claim. The problem is current Turbo Tax only check these for last year and not two years ago. It blindly add your refund to your taxable income.

Best

[AmyC]

You are correct and know the rules, you do not need to add it into the program since it is not going on your return.

[AH15]

Thanks -

This is the best I can do 😉