Current through Register Vol. 63, No. 9, September 1, 2024
(1) If a scholarship award is used to pay
housing expenses, the taxpayer may subtract the amount paid for such expenses
from federal taxable income, but not in excess of the amount of the award
included in federal taxable income.
(2) For purposes of ORS
316.846 and this rule, "housing
expenses" are the reasonable expenses paid or incurred during the taxable year
by an individual for housing for the individual. The term includes expenses
attributable to the housing (such as utilities and insurance) and not otherwise
taken into account as a deduction on the federal income tax return of the
individual. Housing expenses will be treated as reasonable to the extent the
department determines the expenses are neither lavish nor extravagant under the
circumstances.
Example 1
:
Jasmine, a student at Oregon State University, receives a scholarship award
that she includes in her federal taxable income. She buys a house close to the
school. She uses part of the scholarship award to pay the mortgage interest and
property taxes. She also uses part of the scholarship award to buy food and to
fix the roof. Jasmine may subtract the mortgage interest and property taxes
from her federal taxable income on her Oregon return if she does not claim them
as itemized deductions on her federal return, but not in excess of the amount
of the award included in federal taxable income. She may not subtract the food
purchases and the cost of fixing the roof.
Example 2
: Louis, a student at
Portland State University, receives a scholarship award that he includes in his
federal taxable income. He rents an apartment with a roommate about three
blocks from school. In addition to the rent he is responsible for half of the
electric bill and for a monthly parking fee at the apartment complex. He also
pays for half of the monthly fee to Rent-A-Center to rent a sofa and loveseat.
He uses part of the scholarship award to pay for these housing expenses. Louis
may subtract from his federal taxable income on his Oregon return the sum of
his portion of the rent, his portion of the electric bill, the parking fees,
and his portion of the monthly fees for renting a sofa and loveseat, to the
extent such sum does not exceed the amount of the award included in federal
taxable income.
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
316.846
