Oregon State Tax Help

What Oregon income tax refund from federal income should be entered?

On your federal return, you entered a taxable state refund. Just tell us how much of this was for Oregon. Do NOT include local, county, or other states' tax refunds.

How do I calculate federal pension income and percentage?

You may be able to subtract some or all of your taxable federal pension included in your 2014 federal income. This includes benefits paid to the retiree or the beneficiary. It does not include disability payments if you have not reached the minimum retirement age. The subtraction amount is based on the number of months of federal service or points earned before and after October 1, 1991:

  1. If all your months of federal service or points were before October 1, 1991, subtract 100 percent of the taxable amount of federal pension income you reported on your federal return.
  2. If you have no months of service or points before October 1, 1991, you cannot subtract any federal pension.
  3. If your service or points occurred both before and after October 1, 1991, subtract a percentage of the taxable federal pension income you reported on your federal return. To determine your percentage, divide the months of service or points before October 1, 1991, by the total months of service or points earned. Round to three places (example: .4576 = 45.8 percent). Once you've determined the percentage, it will remain the same each year. Enter the percentage on the first line. If you have two federal pensions, enter the second percentage on the second line, and enter your total subtraction amount on the third line. Figure the percentage for each pension separately.

    Federal pension subtraction formula:

    Months of service or points before 10/1/91 X Federal pension amount included in federal income = Oregon Subtraction
    Total months of service or points

    Example: Ann worked for the U.S. Forest Service from March 31, 1977, until January 7, 2012. She worked a total of 417 months; 174 months were worked before October 1, 1991. In 2014, she received taxable federal pension income of $35,000. Using the formula, her federal pension subtraction is:

    174X$35,000=$14,595
    417

    She can subtract 41.7 percent--or $14,595 ($35,000 * 0.417)--of her taxable federal pension. She will continue to subtract 41.7 percent from Oregon income in future years.

What military pay qualifies for an Oregon subtraction?

If you included U.S. military pay in your federal taxable income, you may qualify for a subtraction on your Oregon return.

You can subtract all military pay earned while stationed outside Oregon during the year plus up to $6,000 military pay earned in Oregon. Note: Your total subtraction cannot be more than your total taxable military pay income.

Guard and reserve annual training, weekend drills, and inactive duty training ARE ELIGIBLE for this subtraction.

For more information, go to the Military personnel filing information section of the Oregon Department of Revenue website.

Example: Barry, an Oregon resident, enlisted in the Army in 2010. From January to August 2014, he was stationed at Fort Lewis, Washington and he earned $24,000 in military pay. From August through December, he was a recruiter in Oregon and earned $12,000. He can subtract the $24,000 earned outside Oregon and $6,000 of the income earned in Oregon.

What income qualifies for the Oregon National Guard and Reserve Pay Subtraction?

If both of the following are true, you can subtract all of the Oregon National Guard or reserve pay you earned while you met the below qualifications.
  • You were a member of the Oregon National Guard or reserves at any time during the year.
  • You were required to be away from home overnight for at least three weeks consecutively.
For more information, go to the Military personnel filing information section of the Oregon Department of Revenue website.

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 2014. 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 2014: $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.

What is the Biofuel Consumer Credit?

Do you use E85 or B99 fuel blends for your car? Do you heat your home with wood pellets or biodiesel that's at least B20? If so, you may be eligible for this credit. Your credit is 50 cents per gallon of qualifying fuel blends, up to $200 per vehicle. For wood pellets, your credit is $10 per bone dry ton up to $200 per taxpayer. If heating your home with qualifying biodiesel, your credit is five cents per gallon up to $200. Contact the department for more information.

What is an Individual Development Account Donation?

If you made a charitable contribution to the Oregon Individual Development Account program during 2014, you may qualify for a credit. The credit is the smaller of $75,000 or 75 percent of the donation made. It cannot be more than your 2014 Oregon tax liability. You can carry over any excess for the next three years. Any federal benefit due to a federal deduction must be reported as an Oregon addition. For more information, please contact the Oregon Department of Revenue.

What is IDA withdrawal for home purchase?

Did you make a qualified withdrawal from your IDA to buy your home? The withdrawal must be used for settlement, financing or other closing costs incurred in purchasing a primary residence. This credit is in addition to the subtraction for contributions to the IDA.

The credit is the least of:
  • The amount withdrawn from the IDA,
  • The qualifying closing costs to purchase a primary residence,
  • The taxpayer's tax liability for the year, or
  • $2,000.

  • There is no carryforward and the credit is not prorated for part-year residents or nonresidents.

    How will my Oregon voluntary contribution be used?

    American Diabetes Association

    Your donation will help continue diabetes research and advocacy programs in Oregon.

    American Diabetes Association
    4380 SW Macadam Ave
    Portland OR 97239

    Oregon Coast Aquarium

    Your donation will help fund educational programs, conservation efforts, and animal rehabilitation.

    Oregon Coast Aquarium
    2820 SE Ferry Slip Road
    Newport OR 97365

    SMART

    Your donation will help fund the Start Making a Reader Today early literacy program for Oregon's most vulnerable children.

    Oregon Children's Foundation/SMART
    101 SW Market Street
    Portland OR 97201

    SOLV

    Your donation will help fund thousands of projects, to clean up and restore beaches, forests, rivers, and neighborhoods across Oregon.

    SOLV
    2000 SW 1st Ave Suite 400
    Portland OR 97201

    The Nature Conservancy

    Your donation will help purchase and restore critical habitats for Oregon's at-risk plants, fish, and wildlife.

    The Nature Conservancy
    821 SE 14th Avenue
    Portland OR 97214-2537

    St. Vincent de Paul Society of Oregon

    Your donation will help provide services leading to self-sufficiency for low-income Oregonians.

    St. Vincent de Paul Society of Oregon
    705 S Seneca
    Eugene OR 97402

    The Oregon Humane Society

    Your donation will help save pets' lives through rescue, sheltering, adoption, education, cruelty investigation, and advocacy.

    The Oregon Humane Society
    PO Box 11364
    Portland OR 97211

    The Salvation Army-Oregon

    Your donation will ensure help for the neediest children and their families throughout Oregon.

    The Salvation Army
    8495 SE Monterey #8
    Happy Valley OR 97086

    Doernbecher Children's Hospital Foundation

    Your donation will fund the Child Life Program at Doernbecher.

    Doernbecher Children's Hospital Foundation
    1121 SW Salmon, Suite 100
    Portland OR 97205-2021

    The Oregon Veterans' Home

    Your donation will improve the quality of life for veterans receiving nursing care at the Oregon Veterans' Home.

    Oregon Veterans' Home Donations
    700 Summer Street NE
    Salem OR 97301-1285

    Prevent Child Abuse

    Your donation will fund programs through the Children's Trust Fund to help prevent child abuse, neglect, and to strengthen families.

    Children's Trust Fund of Oregon
    1785 NE Sandy Blvd Suite 270
    Portland OR 97232

    Alzheimer's Disease Research

    Your donation goes to the OHSU Foundation and funds Alzheimer's research by Oregon researchers.

    Layton Aging and Alzheimer's Disease Center
    3181 SW Sam Jackson Park Road CR131
    Portland OR 97239

    Stop Domestic and Sexual Violence

    Your donation will fund programs through the Oregon Coalition Against Domestic and Sexual Violence.

    OCADSV
    380 SE Spokane St., Suite 100
    Portland OR 97202

    Habitat for Humanity

    Your donation will help Habitat for Humanity build simple, decent, and affordable housing for low-income families.

    Habitat for Humanity of Oregon
    PO Box 11452
    Portland OR 97211

    Oregon Head Start Association

    Your donation will help Head Start provide services to the lowest income, highest-need children and families.

    Oregon Head Start Association
    221 B Street
    Springfield OR 97477

    Oregon Military Financial Emergency Assistance Program

    Your donation provides hardship grants and loans to soldiers and airmen of the Oregon National Guard and their immediate family.

    Oregon Military Department
    PO Box 14350
    Salem OR 97309-5047

    Oregon Historical Society

    Your donation helps preserve and interpret Oregon history.

    Oregon Historical Society
    1200 SW Park Ave
    Portland OR 97205

    Oregon Food Bank

    Oregon Food Bank collects and distributes nearly 60 million pounds of emergency food annually. OFB also works to eliminate the root causes of hunger through education; advocacy of policies to lift people out of poverty; and public awareness of the toll hunger takes on society.

    Oregon Food Bank
    PO Box 55370
    Portland OR 97238-5370

    Albertina Kerr Centers

    Your donation goes to support vital children's mental health programs and services for people with developmental disabilities.

    Albertina Kerr Centers
    424 NE 22nd Ave
    Portland OR 97232

    American Red Cross

    Your donation will save and rebuild lives by providing relief to victims of disasters in Oregon and helping Oregonians prevent, prepare for, and respond to emergencies.

    American Red Cross
    PO Box 4125
    Portland OR 97208-4125

    Oregon Non-game Wildlife

    Your donation will fund the protection of non-game wildlife and its habitat.

    Oregon Department of Fish and Wildlife
    3406 Cherry Avenue NE
    Salem OR 97303-4924

    Planned Parenthood of Oregon

    Your donation will fund family planning services and reproductive health education programs.

    Planned Parenthood of Columbia/Willamette
    3231 SE 50th Avenue
    Salem OR 97206-2248

    Oregon Lions Sight & Hearing Foundation

    Your donation will fund sight and hearing assistance, and provide diabetes awareness for Oregonians.

    Oregon Lions Sight and Hearing Foundation
    1010 NW 22nd Avenue #144
    Portland OR 97210

    Shriners Hospitals for Children-Portland

    Your donation will help provide braces and artificial limbs for Oregon's children.

    Shriners Hospital
    3101 SW Sam Jackson Park Road
    Portland OR 97239

    Special Olympics for Oregon

    Your donation will help provide life-changing services to thousands of Oregonians with intellectual disabilities

    Special Olympics Oregon
    5901 SW Macadam, Suite 200
    Portland OR 97239

    Susan G. Komen for the Cure

    Your donation funds critical breast cancer research, education, screening and treatment.

    Susan G. Komen for the Cure
    1500 SW 1st Avenue, Suite 270
    Portland OR 97201

    Cascade Aids Project

    Your donation will help Cascade AIDS Project prevent HIV infections through testing and education, support and empower people affected and infected by HIV/AIDS by providing housing, case management and social supports, and eliminate HIV/AIDS-related stigma in Oregon.

    Cascade AIDS Project
    208 SW 5th Avenue, Suite 800
    Portland OR 97204

    Veterans Suicide Prevention and Outreach Program

    Your donation will fund programs through the Oregon Department of Veterans Affairs to create and coordinate public information campaign to prevent veteran suicide.

    Oregon Department of Veterans Affairs
    700 Summer Street NE
    Salem OR 97301

    What is considered a severe disability?

    You are considered to have a severe disability if any of the following apply:
    • You permanently lost the use of one or both feet.
    • You permanently lost the use of both hands.
    • You are permanently blind.
    • You are unable to earn a living due to a permanent condition or impairment of indefinite duration.
    • You have a permanent condition that, without special equipment or outside help, limits your ability to:
      1. Earn a living
      2. Maintain a household
      3. Transport yourself
    Special equipment doesn't include items such as glasses, ordinary crutches, hearing aids, or contact lenses.

    You don't qualify for this exemption if one of the following applies:
    • You have a temporary disability from an injury or illness and are expected to recover.
    • Your condition keeps you from doing your former work but does not prevent you from doing other kinds of work without special equipment.
    If you have a permanent severe disability, your physician must write a letter describing your disability. Keep the letter with your permanent health records.

    What lottery winnings are taxable?

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

    If you claimed gambling losses as an itemized deduction on your federal Schedule A, then you must add the gambling losses claimed as an itemized deduction that are more than the gambling winnings taxed by Oregon.

    Example: Angela reported total gambling income of $580 on her federal return ($500 from the Oregon Lottery plus $80 from the horse races). On her federal Schedule A, Angela deducted $300 of gambling losses.
    Angela will subtract $500 from her Oregon income. This is the amount of her Oregon Lottery winnings. Her net gambling winnings, taxable by Oregon, are reduced to $80. Angela may not claim more in gambling losses than her gambling winnings taxable by Oregon. Because her gambling winnings taxable by Oregon are only $80, she may not claim more than $80 in gambling losses on her Oregon return. She is required to reduce her deduction for gambling losses from $300 to $80. The difference of $220 is an Oregon addition.

    Gambling winnings reported on federal AGI $ 580
    Less subtraction for Oregon Lottery Winnings -500
    Net gambling winnings taxable by Oregon$ 80
    Gambling losses claimed on federal Sch A $ 300
    Net gambling winnings included in Oregon income -80
    Reduction in gambling losses/Oregon addition$ 220

    In this example, you would enter $220 on this screen, as an addition to your federal income.

    Do I qualify for the Long-Term Care Insurance Premiums Credit?

    You are allowed a Long-Term Care Insurance Premiums Credit if ALL of the following are true:
    1. Your policy was issued in 2000 or later.
    2. You, your parents, or your dependents are the policy beneficiaries.
    3. You paid premiums for 2014.
    If you are going to claim an Oregon Long-Term Care Insurance Credit this year, and you claimed a federal deduction for the premiums, you must add to Oregon income the amount of premiums that resulted in a tax benefit on your federal return.

    Employers paying for long-term care insurance for employees may also claim this credit.

    Can I carry forward amounts contributed to an Oregon 529 college savings plan?

    You can subtract up to $4,455 for Married Filing Jointly returns or up to $2,225 for all other returns for contributions made to a 529 Oregon College Savings Network account in 2014. If you contribute more than your limit, you can carry forward the remaining contribution not subtracted over the next four years. Rollovers from other 529 plans into an Oregon 529 plan are considered new contributions and qualify for the subtraction. Keep a copy of your account statement with your tax records.

    For more information, go to the Oregon 529 College Savings Network website.

    What is the Child and Dependent Care Credit carryforward?

    If you were not able to use all of your child and dependent care credit in a previous year, you can carry it forward and use it in 2014. The unused portion can be carried forward up to five years.

    How do I claim the Loss of Use of Limbs Credit?

    If you have a permanent and complete loss of the use of two or more limbs, you may take a $50 tax credit. Your spouse also may claim a $50 credit if he or she qualifies. You can't claim this credit for a dependent.

    Obtain a disability certification form the first year you file for the credit. Contact your county public health officer for the form. The health officer must sign the form. Keep the form with your permanent health records for future years in which you take this credit.

    What is the Oregon Cultural Trust Credit?

    If you donate to an Oregon nonprofit cultural organization during the tax year, and you donate a matching amount to the Oregon Cultural Trust, you can claim a tax credit.

    You can claim a tax credit of up to $500 per taxpayer ($1,000 on a Married Filing Jointly return) for the amount you contributed to the Oregon Cultural Trust. Any federal benefit due to a federal deduction must be reported as an Oregon addition. For more information, please contact the Oregon Department of Revenue.

    What is the Residential Energy Credit?

    To qualify, you must purchase an energy efficient appliance or install a solar device or geothermal system. Renters who purchase qualifying equipment or systems may also qualify for this credit. For more information, go to the Oregon Department of Revenue website, or call 503-378-4040 (Salem) or 1-800-221-8035 (toll-free from an Oregon prefix).

    What long-term care insurance premiums can be subtracted?

    You are allowed a Long-Term Care Insurance Premiums Credit if ALL of the following are true:
    1. Your policy was issued in 2000 or later.
    2. You, your parents, or your dependents are the policy beneficiaries.
    3. You paid premiums for 2014.

    The credit for Single and Joint Filers is the smaller of 15 percent of the premiums paid or $500. For Married Filing Separate filers, the combined credits on the spouses' returns can't be more than the credit they would have been allowed on a joint return.

    Employers paying for long-term care insurance for employees may also claim this credit.

    Contact the Oregon Department of Revenue for more information.

    What are estimated tax payments? What do I enter on this screen?

  • Enter any estimated tax payments you made for 2014.
  • Enter any amounts credited from your 2013 return.
  • Enter any amount paid with extension requests.

  • Do NOT enter any amount of your 2014 Oregon Income Tax withheld by your employer(s) as shown on any wage or tax statements.

    Do I qualify for the Working Family Credit?

    This refundable credit is available to low-income working families with qualifying child care expenses. To qualify, ALL of the following must be true:
    • You had at least $8,400 of earned income, and
    • You had $3,300 or less of investment income (such as interest, dividends, and capital gains), and
    • Your adjusted gross income was less than the limits for your household size. These limits can be found on the 2014 Oregon Working Family Child Care Credit Tables.
    • You paid qualifying child care expenses to allow you (and your spouse, if married) to work or attend school at least part time, or you or your spouse are exempt from this requirement due to a qualifying disability, and
    • You paid qualifying child care expenses for your qualifying child. A qualifying child is your child, step child, grandchild, step grandchild, brother, sister, stepbrother, stepsister, nephew, niece, step nephew, step niece, or eligible foster child who:
      • Lived with you at least half of the year, and
      • Was under the age of 13 at the time the care was provided, or
      • Was a child who qualifies for the additional exemption credit for a child with a disability, and
    • Your child care provider was not the child's parent, guardian, or your relative or step relative under the age 19.

    Note: If you're married filing separately, you must be legally separated or permanently living apart on December 31, 2014, to qualify.

    How do I determine my household size?

    Your household size is the number of people you claim as exemptions on your federal tax return who live in your home. In your household size, you can include your child of whom you have primary custody, even if you allowed the child's other parent to claim the exemption on his or her tax return. You cannot include people you are entitled to claim on your tax return who did not live with you in your home during 2014 or who aren't related to you. For the purposes of this credit, an individual cannot be counted in household size on more than one return.

    What is a qualifying disability for a child?

    You may be entitled to an additional personal exemption for your dependent child who has a qualifying disability. To qualify, all of the following must be true:
    • Your child qualified as your dependent for 2014.
    • Your child was eligible for Early Intervention Services or received special education as defined by the State Board of Education.
    • Your child was considered to have a disability as of December 31, 2014, under the federal Individuals with Disabilities Education Act. Eligible disabilities include:
      • Autism
      • Deaf or blind
      • Hearing impairment
      • Multiple disabilities
      • Orthopedic impairment
      • Emotional disturbance
      • Traumatic brain injury
      • Visual impairment
      • Communication disorder
      • Specific learning disorder

    You must get a statement of eligibility that confirms one of the disabilities listed above and the cover sheet from one of the following:
    • The child's Individualized Education Program (IEP)
    • The child's Individualized Family Service Plan (IFSP)

    Keep the statement and cover sheet with your permanent health records.

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