Oregon federal tax subtraction again incorrect 2021

[cinmon428]

For the 2021 Oregon returns, which just appeared this morning, the federal tax subtraction calculation is wrong again, similar to what happened last year. The rules for the federal tax subtraction are printed in the Oregon Publication 17, page 72, "federal tax worksheet." Instructions clearly state that the (third) stimulus and/or recovery rebate amounts must be subtracted from the federal tax liability to determine the correct subtraction. This is not being done by the software. I am aware that I can override error checking when I efile but it would be nice to avoid doing this on hundreds of Oregon returns. Can someone pass this information on to the people who can fix this?

[BobKamman]

Was the issue ever resolved last year?  If I had to do hundreds of Oregon returns I would not want to argue with the instructions, but those aren't enacted by the Legislature.  

[cinmon428]

The problem was fixed by Proseries last year right before the efiling season started.

Once people started hearing about this last year, they got in touch with legislators and an attempt was made to get rid of this reduction. No luck, though, and the bill died. 

[jeffmcpa2010]

This is a very early version - essentially a BETA testing version of the software at this point.

It will likely be close to the open of E-File by the IRS (Early February hopefully) before a lot of the current problems get addressed.

[cinmon428]

Oh I certainly don't expect it to be fixed right away. Last year it was at the last minute, right before efiling started. As long as someone can get the information to the people who fix the software, I'm fine. By the way, the other modifications that have to be done to the FTS calculation are all working. 

[taxladyworking]

I just spoke with Intuit/Proseries about this incorrect processing of the Stimulus in the Federal liability subtraction for Oregon and was told that it should be corrected in the final update on 2/24/22. The support tech recommended holding off to e-file returns for Oregon until it is fixed. Has anyone else heard something different? 

[cinmon428]

I've been filing my Oregon returns for 2 weeks already. I have to manually fix at least half of them. Trashy software to be very nice about it. 

[cinmon428]

One of my Oregon returns has been held up at Intuit. Customer service indicates there is now a hold on Oregon returns in order to update the FTS calculation. I'm not sure if this pertains to all Oregon returns or just the ones that have been overridden to get the correct number. Is anyone else working on Oregon returns who can comment?

[IntuitGabi]

@cinmon428 We're reviewing this. When I have updates I'll let you know on this thread. Thanks for posting! 

[cinmon428]

This is what I know so far. Only one of my Oregon returns is held up with Intuit. It is a return where I had to override the FTS because it was calculated incorrectly. I have other returns that don't have to be changed, either because the FTS is at the max regardless of the software error, or because the FTS is zero regardless of the software. All those have gone through. The only one held up so far is the one where I had to override. Past overrides (before Wednesday) all went through. Also, I called and was told the "hold" was because the FTS was being updated, no date known. 

[cinmon428]

Turns out I am correct. They ARE holding Oregon returns when the FTS deduction is above zero. 

[cinmon428]

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

[Ruby T]

I too have Oregon tax returns which rejected over the federal tax subtraction.  Needless to say, clients are unhappy to hear this and now the refunds will go down.   I received the reject which said the software would be updated 2/17/2021, today, and it has not yet.  Am I reading this correctly it will be when?  Isn't there a limit on how many times you can e-file before it must go to a paper return?

[cinmon428]

My Oregon returns are all going through now with correct information. The one thing I can't stand about Intuit is that their communication is grotesque, and I mean grotesque. They fixed the thing yesterday, but you still could not file get the Oregon returns through their hub. They got rejected again. The guy I spoke to yesterday said it might be until the 24th before the returns would go through. That's not someone who wants to lift a finger to help. Today I got a very nice woman and I spent 2 hours on the phone with her before she could say with at least some certainty that filing this afternoon would work. And she was right. But to get information from them, it takes a large amount of time and you have to get lucky and get someone who wants to work.