Oregon 529 Credit Calculated Incorrectly

Forum|Forum|2 years ago
February 28, 2024
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I'm using TurboTax Premier, and trying to fill in my Oregon tax return for 2023. I contributed $6800 to my kids' 529 plans in Oregon this year, which should max out the $340 refundable credit (5% - since I make over the highest income threshold for the credit - of $6800 is $340, and my tax liability is _far_ higher than that). However, the calculation is only giving me a credit of $294. I have no idea how it's coming up with that, because in the actual "smart worksheet" it's calculating the $340, but then giving a result of $294 (picture attached).

Any suggestions?

JohnW152

You're stating the computation limitation correctly, but there can be wrinkles.

Are you a married taxpayer filing a separate return? Or, are you a part-year resident or nonresident?

If so, these factors could affect the amount you're eligible for. See ABLE account contributions in Oregon's Publication OR-17, Individual Income Tax Guide.

dmztffAuthor

I'm married filing jointly on a non-resident return, because my wife is non-resident. I guess I'll look at that guide and see what it says about that situation.

AmyC

Employee

Page 123 of Oregon's Publication OR-17, Individual Income Tax Guide. states: Part-year residents and nonresidents. Multiply the credit amount allowable to a full-year resident by your Oregon percentage.

Since $34/$6800 is 5% so I am guessing 5% of your income is OR income.

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