Questions & Answers

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 means all games offered by the Oregon State Lottery Commission and purchased in Oregon.

If you claimed gambling losses as an itemized deduction on your Oregon Schedule OR-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 Oregon Schedule OR-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 Oregon Sch OR-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.

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