Oregon is requiring people to pay a state tax on their stimulus checks. Is that reflected in the Turbo Tax program???

[KathrynG3]

If the search is not working for you, try two other ways.

1. Go to Forms mode and follow these steps:

• Click Open Form and enter Recovery Rebate.
• Double click on the worksheet to open it.
• Override Lines 16 and 19 with your first and second stimulus payments. If you did not receive anything, enter zero for each.

2. Go to Step-by-Step mode, under the PERSONAL tab and select Other Tax Situations. 

• Next, scroll down to the end of the section and click Done with Other.
• The next screen will say It looks like you qualified for the stimulus, did you get any payments?

For more information about this credit, see IRS: Recovery Rebate Credit Frequently Asked Questions

@Anonymous

[KaylaCPA122]

If your Federal tax liability is greater than 6950, then the stimulus payments wont effect your Oregon Return

[StuffedTurkey007]

I believe there's a glitch in the 2021 tax year (online version).

The software says our Oregon taxes due are $245 less than they should be (I worked it out by hand to double-check).

I think the software's Oregon subtractions are $2,800 higher than they should be.

Line 10: Enter any 2021 federal economic stimulus payments you received in 2021 PLUS your recovery rebate
credit, if any, from Form 1040 or 1040-SR, line 30. Refer to your IRS Notice 1444-C for the amount of stimulus
payments you received in 2021.

-2021 Form OR-40 Instructions: Instructions for Federal tax liability subtraction worksheet

I think the software is only using the $0 from Form 1040 line 30, and not adding the $2800 stimulus payment I already received (which I had already indicated in the software). 

[PattiF]

Oregon is not taxing the stimulus checks that were received in 2021. Oregon subtracts federal taxes that were paid in the state income calculation. The payments may impact the federal tax subtraction on your Oregon income tax return. 

Here is more information about Oregon and Stimulus payments.

[StuffedTurkey007]

You are correct Patti. But, I think the software is incorrect.

Note the instructions for line 10

I told the software that I received $2800 on my IRS Notice 1444-C, but it seems to have ignored that money for line 10.

[SteveSng]

TurboTax Deluxe 2021 for Oregon doesn't pull the 2021 Economic Impact Payments we recieved (reported on Letter 6475) into the Oregon Federal Tax Worksheet (I think it goes on line 10).

I can't figure out any way to enter it manually.

Called customer support today and they said they'd look at it.

[EdwardGivens]

TurboTAX most certainly does NOT account for this. Oregon rejected my return - I'm told I must "fix" it. But wait! Not until the 17th. 

SO.

You now PAY to have TT fill in a few lines for you and they still got it wrong, 

What am I paying for exactly?

[jconolly]

This was not working as of Feb 12, 2022 for 2021 tax returns.  My OR e-file was rejected. Turbo tax said they were the problem and updated OR this morning 2/17/2022.  It still does not work, when I went back thru federal and OR after updating OR & federal this morning turbo tax didn't even ask for the amount of my March 2021 3rd Stimulus check to include in the OR worksheet or to calculate the federal Recovery Rebate, maybe because my AGI is too high for the federal rebate ..... However, OR still needs the info to calculate an accurate OR return.  Also, the fed tax deduction worksheet for OR does not print with the return "for filing".  I don't know if it is part of the OR e-file.

[jconolly]

You are correct, Turbo tax is doing the 2021 federal tax deduction for OR returns wrong, they know it and put an OR update out today 2/17/2022.  However, today's update did not fix the problem.  Turbo tax doesn't even ask for your 2021 stimulus payments, so of course they don't get the OR fed tax worksheet correct.