climbon05
Level 1

Hi...I don't mean to beat a dead horse here but I want to be sure I understand something. Prior to inputting my simuls I had a refund both fed & state. Post entering my stimulus: Fed unaffected as I would expect, State I now owe. I noticed after inputting the $1200 stimulus as the software requested I am now in a "owe" situation. Is it true this is somehow taxable by the state? 
OR Fed Tax Liab Subtraction Worksheet:
  Fed Tax Liab                  5,839
  Recover Rebate Credit  1,200
  Subtract 9 from 5            4,639
  Max allowed                    6,950
  Smaller of 10 or 11          4,639
Can someone help me understand why this is taxable? Why it is reducing the fed liability that ends up increasing my taxable income? I was under the impression the stimulus was not taxable...but maybe OR Dept of Rev believes differently from IRS (Fed)?
Thank you for any explanation someone can give.

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