I'm aware that the software still has a lot of updating to do. With that said, I thought I should bring this up as soon as possible. Oregon has a federal tax subtraction every year. For 2020, that subtraction has to be reduced by the two stimulus payments received (as well as the recovery rebate claimed on the 2020 federal return). I am noticing that the software has reduced the subtraction by just the first stimulus, not the second. Can you tell me whether that will be revised before the software is ready to efile? Thanks.
Upon further testing, I can see that the federal subtraction on the Oregon return, which currently only takes into account the first stimulus, can be overridden, but ONLY for brand new returns. For returns where information is being carried over from a previous year (in other words, any ongoing client), when attempting to correct the federal subtraction on the Oregon return, an error is created in the Oregon software.
After today's update (January 13), the Oregon federal tax subtraction still is not correct. The second stimulus payment (or recovery rebate credit, whichever applies) is still not reducing that federal tax subtraction, so the number showing for the federal tax subtraction is still incorrect. Hopefully they are still working on this, but we're getting close to opening day, so I'd appreciate it if someone could check and see that they are aware of this problem.
To make things a bit more complicated, I see that the second stimulus was not available (constructively received) until January 4, 2021 at the earliest, which should mean that it is a factor for 2021, not 2020. So I have requested guidance from the Oregon Dept. of Revenue. Perhaps the second stimulus is NOT a reduction in the federal tax subtraction for Oregon for 2020 taxes. More to come....