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Oregon federal tax subtraction is incorrect

cinmon428
Level 7

The 2021 Oregon Federal Tax Subtraction is broken for the second straight year. The computation does not reduce the FTS by the 3rd stimulus. I complained about this about a month ago and was assured it would be fixed, but I see no progress and we are one week into the filing season. I have had to do the computation by hand and uncheck the error box for efile on my early submissions. Does anyone know if this is going to be fixed? It was fixed by now last year after much complaining. 

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19 Comments 19
Just-Lisa-Now-
Level 15
Level 15
I see another OR update is scheduled for 2/3, maybe they'll have it fixed.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
cinmon428
Level 7
That update will make various forms useable, but the main 40 form is now supposed to be useable even though the FTS is incorrect. This is lousy. Anyone filing now without being aware of this, without correcting the errors, will have their clients getting letters from the state who knows when, maybe a year for now, demanding payment of several hundred dollars. This is very lousy. 
 
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cinmon428
Level 7

Do you know, Lisa, whether they are working on it? I was told by two different people a month ago that it would be fixed. It's impossible to get accurate information. 

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IntuitGabi
Moderator
Moderator

@cinmon428 Were you able to confirm that this was updated in the 2/3 release? 

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cinmon428
Level 7

It has definitely NOT been updated. I have to correct many of the Oregon returns by overriding. This is definitely a trashy software at this point!!!

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hxnn
Level 1

I found a solution ... go to the Fed Tax Liability Worksheet, place your cursor on Line 10 and hit Ctrl-D.  This will allow you to enter the applicable amount (1400) which will then adjust the Federal Tax Liability on OR Form 40 accordingly.

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cinmon428
Level 7

By golly, I believe you've got it! Thanks very much!

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cinmon428
Level 7

On second thought, I'm still not sure that fixes it. I just filed a return that was over the FTS max, showed zero errors, but is being held at Intuit. It might be that they are holding all the returns that don't show zero FTS. Who knows? Don't you just love the way Intuit communicates? 

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cinmon428
Level 7

Turns out that it is not a solution. They are holding all Oregon returns with FTS above zero, regardless of whether there is an error message or not. At least they are holding all of mine!

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Just-Lisa-Now-
Level 15
Level 15

I have less than a handful of OR returns that I prepare, Im trying to understand what is or isnt happening correctly that people are complaining about.

I see my clients federal tax from Line 16 of the 1040, land on the OR Form 40 Line 10...is that wrong? How does the 1400 play into this? Im totally confused.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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cinmon428
Level 7

The instructions for calculating the federal tax subtraction are in Oregon Pub 17, pages 72-73. Proseries is subtracting everything that needs to be subtracted from the FTS EXCEPT the 3rd stimulus. Oregon is taxing the 3rd stimulus and it is not reflected in the Proseries calculations. Even if you override the worksheet for the FTS (in the Oregon software), and no errors are shown, Proseries is not sending the Oregon returns to Oregon. They are holding them. I am trying to find out when they will release them, if they will reject them, update the software and then ask for a re-submittal, or just what they are going to do and when. 

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cinmon428
Level 7

The only Oregon returns that Proseries seems to be sending to Oregon currently are the returns with a zero FTS deduction. 

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cinmon428
Level 7

It's not line 16 of the 1040, it's line 22 of the 1040, plus some things, and minus some other things. Look at the instructions I cited to see all of them. Or look at the FTS worksheet in the Oregon software. 

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cinmon428
Level 7

Since they're now holding all the Oregon returns, I'm not going to submit any more of them until I hear they've fixed this. Tier 2 at customer service behaves like North Korea. Impossible to get an ETA or anything else from them but "they are working on it."

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cinmon428
Level 7

I requested an alert go up on the software and I think I'd rather have some teeth pulled than go through that again. But I think Tier 2 agreed to it. (Of course, we cannot speak with Tier 2. One only wonders where Tier 2 is encamped.) So we'll see if that shows up. This error only affects about 500,000 Oregonians. That's all. 

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Just-Lisa-Now-
Level 15
Level 15
well line 16 and 22 are the same and they've got noting below Line 22 except for withholding, I think Im ok.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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cinmon428
Level 7

The issue isn't whether you're ok. The issue is whether line 10 on OR-40 calculates the federal tax subtraction correctly. It doesn't currently, for anybody who received the 3rd stimulus and is in the mid-range of federal tax paid, between $0 and $7050. Anyone in there after subtracting the other things that you have to subtract (the AOC, the Premium tax credit, etc.) is going to show the wrong amount, because the stimulus hasn't also been subtracted. Up until last week, if you overrode the amount on line 10 on OR-40, you could submit by efiling. Now that option is shut down. I don't believe any of the Oregon returns are going through except for, as I said before, the ones that already show zero FTS on line 10.

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cinmon428
Level 7

I see some progess. Returns being held have now been rejected and they say to come back after 2/17, update, and resubmit. 

IntuitGabi
Moderator
Moderator

The next release will address this. Thank you cinmon248! 

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