Where do you report the Portland Arts Tax on the Federal Income Tax return in Turbotax?

[user6141620]

For the Portland Arts tax, payments are made in the current year for the previous year. Thus, I paid $35 in 2022 for tax year 2021. In 2023 I paid $35 for tax year 2022. Would I list it under Other Income Taxes Paid in 2022 under balance due on you 2021 local taxes paid in 2022?

[MonikaK1]

See DawnC's response in this thread.

You can enter the Portland Oregon Arts tax, that you paid in 2022, in the Estimated Payments section of the Federal return for state and local taxes

Taxpayers that itemize deductions on their federal income tax return will generally be able to deduct their Arts Tax payment paid on Schedule A (as State and Local Income Taxes).   To report the tax payment you made, please follow these steps:

1. Click on Federal >  Deductions & Credits. 
2. In the Estimates and Other Taxes Paid section, click on the Start/Update box next to Estimates. 
3. On the next screen, click the Start/Revisit box next to Local Estimated Taxes for 2022. 
4. Answer Yes on the next screen Did you pay local tax in 2022?
5. Choose Portland Arts Tax, OR (it is near the bottom) from the Locality drop-down options
6. Enter the date and payment amount

The payment will be included in Schedule A with other state and local income taxes. 

Under current law, the deduction for state and local taxes is limited to $10,000.

The tax is $35 for each Portland resident age 18 and older that earns income above the federal poverty level and has $1,000 or more income. See here for more information. 
 

[user6141620]

Hi, thank you for your response.

For documentation in TurboTax for the $35 Portland art tax I paid in 2022 for tax year 2021, for 2022 tax federal TurboTax, could I report it under Estimates and Other Taxes Paid, then under Income Taxes Paid, then under Income Taxes Paid in 2022, then under Balance due on your 2021 local taxes paid in 2022?

I am not reporting payment for the arts tax for 2022 as I just paid it and was going to report it next year using the method as listed in the above paragraph. 

[DawnC · Accepted solution]

If you enter it that way, it won't go to the correct line (but it will work out the same;).   For the 2021 payment, you made in 2022, enter it this way:

Estimates And Other Taxes Paid>>

Estimates>>

2021 local estimated taxes paid in 2022>>

Find Portland Arts Tax from the list and enter the amount

[user6141620]

Thank you so much, this was very helpful!

[NotAnXpertPDX]

When PDX first started this tax, Turbo Tax had no place for it as a local tax.  I tried to declare it on my Oregon taxes and got audited because my fed return and my state return was out of balance by $70, the amount I had paid to Portland.

When I talked to Oregon IRS, the guy said, "Oh, well most people don't pay that tax anyway."

Subsequently, I have included the Portland Arts Tax as a gift to charity.  Since I itemize, it works out the same as if it were a local tax.  I and some friends have been doing this for the past several years, and it keeps our fed and state returns in balance. I don't know if Turbo Tax has figured it out yet, and in my case, I don't care.  I know that I am paying my arts tax as required.  And I get some manner of credit with the feds and state.

My work around works if you itemize.

Peace to you.

"Taxes are the price we pay for civilization." Oliver Wendel Holmes, Jr

[mrletter]

Where is this at?

[AmyC]

Please follow my steps here with pictures.  @mrletter