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 2: David won two prizes in 2012: $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.