Data entry on OR-K-1

[JMH617]

Lacerte: An Individual tax client with a 2019 S-Corp OR-K-1.  There is an entry in section, Oregon additions, Line 15 "Other additions" with a schedule reporting, "State Taxes - Based on Income" with a larger federal amount and smaller Oregon Amount.  I cannot see a clear data entry location in Lacerte Screen 20.2.  Where do you enter these amounts in the Individual return?

Thank you for any reply.

[George4Tacks · Accepted solution]

First - My compliments on such a well written question. 

I don't do OR, so I had to look at the OR K-1. It seems that there was a state tax refund, which was included in income on the federal return. If the Federal K-1 showed the other income on some line, then use that same line to input the State if different.

Does Oregon normally make an adjustment for state tax refund on the 40? Do you do something with the smaller OR number or just the difference in the two? I don't know. As far as input goes, I would just adjust line 1 for State (if different) in the right hand column.   In other words, make it work. 

[JMH617]

Thank you.  That was the only thing I could think of.  The tax impact is minimal; I'm more interested in the client not having to reply to a notice for a small tax difference.