Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS
Section 150-316-0088 - Addition of Taxes Paid to Another State Claimed as an Itemized Deduction
Universal Citation: OR Admin Rules 150-316-0088
Current through Register Vol. 63, No. 9, September 1, 2024
(1) If a taxpayer claims a credit for taxes paid to another state and the tax is also included as an itemized deduction, the taxpayer must restore to Oregon income the lesser of:
(a) The amount of the other state's net
tax liability for the year in which the Oregon credit is claimed; or
(b) The amount of the other state's tax for
that year that is included in itemized deductions.
Example
1
: On his Oregon tax return, Joe claims a credit for
taxes paid to Idaho of $100. His tax liability to Idaho for the same year is
$150. He also claims an itemized deduction of $200 for taxes that Idaho
withheld from his wages. Joe must add $150 to Oregon income, which is the
lesser of his Idaho tax liability or the amount claimed as an itemized
deduction for that year.
(2) If the credit for taxes paid to another state is based on a tax liability that is paid in two different tax years, the taxpayer may be required to restore the deduction to Oregon income in two different tax years.
Example 2
:
Jim claims a credit of $250 on his Oregon tax return. His net tax liability to
Idaho is $250. Jim deducts $200 tax withheld by Idaho as an itemized deduction
on his Oregon return. He must add $200 to Oregon income, which is the lesser of
his Idaho liability or the amount claimed as an itemized deduction that year.
If Jim claims the $50 balance owing to Idaho as an itemized deduction for
Oregon in the year he pays it, he must add that amount to Oregon income in that
same year.
Example 3
:
Lois makes her fourth quarter estimated tax payment of $400 for 1999 to Montana
on January 18, 2000. Her 1999 Montana tax liability is $350 and she claims a
credit of $350 on her 1999 Oregon return. In 2000, Lois made $700 of estimated
payments to Montana for tax year 2000. Her 2000 Montana tax liability is $950
and she claims a credit of $950 on her 2000 Oregon return. For tax year 2000,
Lois claims $1,100 in Montana tax as an itemized deduction ($400 plus $700).
Lois's addition on the 2000 Oregon return is $1,050: $350 tax liability for
1999 plus $700 of estimated payments for 2000.
Example 4
: Same facts as in
Example 3, with the following additional facts: Lois makes her 2000 fourth
quarter estimated tax payment of $250 on January 16, 2001. During 2001, Lois
pays $1,500 in estimated tax. She claims $1,750 as an itemized deduction ($250
plus 1,500). Her 2001 Montana tax liability is $1,400 and she claims a credit
of $1,400 on the 2001 Oregon return. Lois's addition to income for 2001 is
$1,650: $250 from tax year 2000 and $1,400 from tax year 2001.
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 316.082
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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