What Oregon lottery winnings can I subtract?

Although Oregon does not tax Oregon Lottery winnings of $600 or less per ticket, the federal government does. Oregon Lottery includes Powerball and Mega Millions tickets you purchased in Oregon.

You can subtract the following winnings included in your federal income from Oregon income:
  • Winnings of $600 or less from each single ticket or play
  • Annual payments from tickets bought before 1998
Example 1: Cheryl had winnings of $200 from an Oregon Lottery scratch-off ticket in 2013. This income is included in her federal adjusted gross income. Oregon does not tax Oregon Lottery winnings of $600 or less per single ticket or play. Cheryl can subtract the $200 she won on the scratch-off ticket.

Example 2: David won two prizes in 2013: $1,000 from an Oregon Lottery scratch-off ticket and $500 playing an Oregon Lottery Keno game. David must include this $1,500 in his federal income, however, Oregon will not tax the $500 he won playing Keno. He can subtract $500 on his Oregon return because the winnings were from a single game and under the $600 limit. He cannot subtract any of the $1,000 he won on the scratch-off ticket, because the prize was more than $600 and is fully taxable to Oregon.

Do not subtract any other type of winnings such as winnings from tribal gaming centers.

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