Why is OR return not deducting out Metro tax?

[bisc13uit]

Oregon tax law allows up to $10k of local tax deductions. Turbotax just enabled the Metro-40 form, and does the calculation. But, it is not adding the tax back into the Oregon deduction leading to overpayment to Oregon. Is this a bug? Has anyone else experienced this issue?

[AmyC]

If you are itemizing deductions for Oregon, the Metro tax is a local tax based on income and would be included. See Schedule OR-A, Oregon Itemized Deductions Instructions.

Check that your w2 is entered with METRO in the local section.

The data source for that line states: 

Starting in January of 2022, Metro employers are required to withhold the tax through payroll deductions for employees who earn more than $200,000 annually or for employees who opt into having the tax withheld. Some employers began withholding the tax in 2021. Your W-2 will indicate that this tax has been withheld in the local tax section under the name "METRO".

[bisc13uit]

Although the withholding requirement for earnings above $200k is true, the issue is the liability starts with lower AGI.  TurboTax did this calculation for Metro and says I owe about $600.  However, this liability doesn't carryover into the Oregon form and thus has me overpaying my Oregon taxes.  I have already paid for the state income filing with TurboTax, but the software logic is not applied correctly and my OR form is incorrect.  Will TurboTax be able to correct the software logic for this, or can you tell me where to file a claim for refund on these costs?  I will need to either complete a corrected return at TurboTax cost, or file my state form separately thru Dept Of Revenue in Oregon as TurboTax has miscalculated this issue currently.  Please advise on best next steps.  

[BrittanyS]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[bisc13uit]

token ID is 1290676.  

if you look at OR-A itemized deductions, it only includes real estate tax (line 6) and the amount withheld for metro from my w2 (line 5).  Even though the metro form says I owe money, TurboTax is not picking up this additional tax liability, understating my taxes paid, and overstating my tax liability to Oregon.  

side note: TurboTax also has another logic error with mortgage points on refis.  I attempted to bypass this within the software, called support 3x waiting on hold for awhile, and asked for a call back.  I'm going on 6wks now without an update on that either.  The bypass isn't pretty on the forms and could trigger unnecessary audit (which TurboTax will need to fund) but at least it gets to the accurate refund.  Please feel free to look at that as well.  

thanks. 

[BrittanyS]

The deduction applies to taxes paid in 2024, not just taxes owed.  The deduction cannot be taken until the year the taxes are paid.  The $33 is included in the form from the W-2 because those were paid out in 2024.  The balance has not been paid on the return, so it is not included in the calculation sheet.    Can you clarify what error you are experiencing with the mortgage points?

@bisc13uit