Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS
Section 150-316-0555 - Modification of Federal Taxable Income: Itemized vs. Standard Deduction
Universal Citation: OR Admin Rules 150-316-0555
Current through Register Vol. 63, No. 9, September 1, 2024
(1) The election of an Oregon taxpayer to itemize or claim a standard deduction is independent of the federal election. Beginning on or after January 1, 1978, a taxpayer may claim the greater of the Oregon standard deduction or net itemized deductions
(2) The standard deduction is zero for Oregon taxpayers in the following cases
(a) Married persons filing separate returns
and their spouse itemizes;
(b)
Nonresident noncitizens of the United States;
(c) Individuals making a return for a period
of less than 12 months on account of a change in annual accounting
period;
(d) Estates and
trusts;
(e) A common trust
fund;
(f) A partnership.
(3) Taxpayer claimed as a dependent.
(a) For a taxpayer who can be
claimed as a dependent on another person's return, the standard deduction
claimed by the dependent is limited to the lesser of:
(A) The amount allowed to a dependent under
the Internal Revenue Code Section 63(c)(5) for the tax year; or
(B) The standard deduction amount as provided
in ORS 316.695.
(b) In addition to the standard deduction, a
taxpayer claimed as a dependent on another person's return can also claim the
additional deduction amounts under ORS
316.695(7) if
they are blind or age 65 or older.
Example 1:
Brian is 17 and works part-time. He earned $2,000 wages and $1,300 interest
income in 1997. Brian is claimed as a dependent on his parents' 1997 return.
His federal standard deduction is the greater of $650 or his earned income.
Brian's $2,000 federal standard deduction, based on earned income, is limited
by the Oregon standard deduction for a single person of $1,800. Therefore,
Brian's standard deduction for 1997 would be $1,800.
Example 2: Assume the same facts as in
Example 1, except that Brian is blind. Brian's total deduction is equal to
$3,000 ($1,800 standard deduction + $1,200 additional deduction for being
blind).
Statutory/Other Authority: ORS 305.100
Statutes/Other Implemented: ORS 316.695
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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