First, you'll need to add back any withdrawn amounts that you previously subtracted.
To do this in TurboTax Online:
- Select Tax Home in the left pane
- On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select Start, Continue, Pick up where you left off, or Review/Edit
- If you land on an Oregon interview page, select Let's get started, Continue or other similar prompt. Otherwise, in the left pane, select Prepare State, then proceed through the Oregon screens
- Proceed through the state screens until you get to the Here's the income that Oregon handles differently screen
- Below Misc adjustments, select Start to the right of Other Additions
- On the Do You Have Additions to Federal Income? screen, select Yes, then Continue
- If the Here's an addition we've already added to your return screen generates, select Continue
- On the Your Additions to Federal Income screen, select the checkbox to the left of If you have an addition to Oregon income that you haven't already entered, then select Continue
- On the Other Additions Statement screen, scroll down the Other Additions document until you get to 166: First-time home buyer savings account nonqualified withdrawal (40, 40N, 40P). Enter the amount that you previously subtracted in the right (Oregon) column. Select Continue
- Then, you'll need to enter the penalty and interest. Proceed through the state screens until you get to the A few things before we wrap up your state taxes screen
- Under Other situations, select Start to the right of Penalty and Interest for Filing or Paying Late
- On the Will You File or Pay Late? screen, select the checkbox to the left of I owe a penalty for a withdrawal from a First Time Homebuyer Savings Account. Select Continue
- On the Penalty and Interest for Filing or Paying Late screen, enter the penalty and interest you owe for your non-qualified withdrawals from the First-Time Homebuyer Savings Account. You'll need to compute the penalty and interest yourself, but see How much is the penalty and when will it be imposed? on Oregon.gov's First-time Home Buyer Savings Accounts page for calculation guidance
- After entering the amount, select Continue
For more information, see:
- Penalty and add back for nonqualified withdrawal on page 77 of Publication OR-17
- First-time home buyer savings account nonqualified withdrawal (ORS 316.801, OAR 150-316-0607) on page 63 of the same document, and
- First-time home buyer savings account (FTHBSA) penalty for nonqualified withdrawal on page 40 of the same document
There are no federal tax implications.