Or. Admin. Code § 150-316-0555

Current through Register Vol. 63, No. 12, December 1, 2024

Section 150-316-0555 - Modification of Federal Taxable Income: Itemized vs. Standard Deduction

(1) The election of an Oregon taxpayer to itemize or claim a standard deduction is independent of the federal election. Beginning on or after January 1, 1978, a taxpayer may claim the greater of the Oregon standard deduction or net itemized deductions

(2) The standard deduction is zero for Oregon taxpayers in the following cases

(a) Married persons filing separate returns and their spouse itemizes;

(b) Nonresident noncitizens of the United States;

(c) Individuals making a return for a period of less than 12 months on account of a change in annual accounting period;

(d) Estates and trusts;

(e) A common trust fund;

(f) A partnership.

(3) Taxpayer claimed as a dependent.

(a) For a taxpayer who can be claimed as a dependent on another person's return, the standard deduction claimed by the dependent is limited to the lesser of:

(A) The amount allowed to a dependent under the Internal Revenue Code Section 63(c)(5) for the tax year; or

(B) The standard deduction amount as provided in ORS 316.695.

(b) In addition to the standard deduction, a taxpayer claimed as a dependent on another person's return can also claim the additional deduction amounts under ORS 316.695(7) if they are blind or age 65 or older.

Example 1: Brian is 17 and works part-time. He earned $2,000 wages and $1,300 interest income in 1997. Brian is claimed as a dependent on his parents' 1997 return. His federal standard deduction is the greater of $650 or his earned income. Brian's $2,000 federal standard deduction, based on earned income, is limited by the Oregon standard deduction for a single person of $1,800. Therefore, Brian's standard deduction for 1997 would be $1,800.

Example 2: Assume the same facts as in Example 1, except that Brian is blind. Brian's total deduction is equal to $3,000 ($1,800 standard deduction + $1,200 additional deduction for being blind).

Or. Admin. Code § 150-316-0555

12-31-80, Renumbered from 150-316.068(1); 12-31-83; RD 15-1987, f. 12-10-87, cert. ef. 12-31-87; RD 7-1989, f. 12-18-89, cert. ef. 12-31-89; RD 5-1997, f. 12-12-97, cert. ef. 12-31-97; Renumbered from 150-316.695(1), REV 64-2016, f. 8-15-16, cert. ef. 9/1/2016; REV 9-2023, minor correction filed 03/14/2023, effective 3/14/2023

Statutory/Other Authority: ORS 305.100

Statutes/Other Implemented: ORS 316.695