Oregon - Metro Supportive Housing Services and Multnomah County Preschool for All Taxes

[Castel]

Did you figure it out? I believe this will affect the deductions for Oregon tax return for 2021. I'm in the same situation and just paid the SHS Portland tax. I'm thinking I should amend the 2021 OR return to account for this and get credit but there's no option to amend for missed local taxes in TurboTax... really frustrating that TT missed this while TaxACT had no problems with it...

[Applesauce]

I received a letter from the city. It was postmarked the day after taxes were due. Least effective government I've experienced and I'm on state 6 of my taxpaying life.

Regardless, doesn't excuse TurboTax, a "premium" tax preparation software, from not so much as providing an alert to users about the tax. Portland metro is nearly 1% of the US. 

[Applesauce]

Sure there are thousands, but Portland metro encompasses about 1 in 100 Americans. I'd think that reaches the threshold for a "premium" tax preparation software choosing to do business in that region.

[mbpdx]

I remember that letter now and it was late!  And then two weeks after filing you get some other letter with an account code.  Wasn’t clear what that was for either.   I would hope the county was willing to credit the late penalty- this tax doesn’t solely target those who would always use a CPA to prepare their taxes.

[m-cebula]

In yesterday's mail, I received a letter with the subject line - Notice of Personal Income Tax Owed - Metro Supportive Housing Services (SHS) Program for the tax year 2021.  The letter suggests I have 45 days to pay this tax or penalties and interest will be assessed.

As I read the chain of message here, the summary seems to be - Turbo Tax customers are on their own to determine how this tax impacts them.  There are no tools within Turbo Tax Premier to calculate the amount of tax due.  There are no forms within Turbo Tax Premier to assist with filing with Metro. (Metro is a government agency reaching the three largest counties in Oregon (Clackamas, Multnomah and Washington - almost 2,000,000 people)

The messages also suggest that while Turbo Tax cannot support it, another tax tool called: TaxAct can and does.

Is my summary accurate? 

[mbpdx]

Unless TurboTax will be updated to address this next year, I believe you are correct.  I would note that you can ask your employer to withhold for this tax year so you avoid penalties for next year.  There are not many pay periods left in the year but you should be able to pick the $$ amount to be withheld.  There are forms/additional information available on the metro/ Pdx website (it appears Pdx is acting as the processing agent for metro).  Lots of other TurboTax users are likely receiving similar surprises.  Hope TurboTax clarifies if they are going to include this going forward ….

[m-cebula]

Thank you for your confirmation and for pointing me to the City of Portland site: https://pro.portland.gov/_/ 

Yes - this letter from the City of Portland came as a surprise!  Fingers crossed that Turbo Tax expands their service for our 2022 returns.

Thanks again, Mike

[mbpdx]

Does this years TurboTax support these local taxes?

[xmasbaby0]

City Tax Returns

TurboTax only prepares a few city or local tax returns as an extra step in your state return.  For most local tax returns you are on your own.  Your only record of paying your local tax will be your own bank/credit card records

https://ttlc.intuit.com/questions/1899325-which-city-tax-returns-can-i-do-in-the-turbotax-state-prog...

[mbpdx]

Thank you for the information.  Unfortunately that means this will be the first year in over 15 years that I don’t buy TurboTax.

[tspike]

Pretty disappointing that this isn't supported over a year later.

[rmardo]

Feb 6, 2023 update. I just spoke with Portland City Tax / Rev department. And they state that they have given Turbotax all of the forms and calculations and programs to enable this. But Turbotax has still not even responded to them.

[AmyC]

Turbo Tax handled the Portland Arts Tax last year and again this year. Follow these steps:

1. Enter your return, go to federal,
2. deductions and credits, 
3. scroll down to Estimates and Other Taxes Paid, 
4. select Estimates, 
5. scroll down to the bottom option, 2021 local estimated taxes paid in 2022
6. Start / Edit
7. Dropdown box, choose Portland Arts,
8. enter the amount

If you itemize on federal, this will be added to your sch A. It may be deductible on the OR return - based on income and property tax also.

See Arts Tax Filing and Payment Information | Portland.gov

@rmardo 

@tspike

@mbpdx

[soulstiss]

This approach would only document the Arts Tax for your Federal/State income tax return. It doesn't actually file and pay the Arts Tax.

[m-cebula]

There is another tax (beyond the City of Portland Art Tax) for residents of Oregon's most populous counties - Multnomah, Washington and Clackamas that being the Metro Supportive Housing Services (SHS) Program.

In 2022, does Turbo Tax support this tax?