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Personal Income Tax Overview

Adjustments to income

Alimony paid

The alimony you paid must be taxable income to your former spouse.
 
Full-year residents. Oregon allows the same deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows a deduction for alimony you paid while an Oregon resident. Oregon also allows a partial deduction for alimony paid while a nonresident if you had Oregon-source income. Use the formula below to determine your nonresident deduction amount. Add these amounts together for your total deduction.
 
Nonresidents. Oregon allows a partial deduction for alimony you paid while a nonresident if you had Oregon-source income. Use the formula below to determine your deduction.
 

Oregon-source income while a nonresident
________________

x Alimony you paid while a nonresident = Nonresident deduction
Total income received while a nonresident
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Certain business expenses of reservists

Full-year residents. Oregon allows the deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows a deduction for the expenses you incurred while you were an Oregon resident.
 
Nonresidents. Your reservist income is not taxed by Oregon. Therefore you may not take an expense deduction.
 

Educator expenses

 
Federal law change. The educator expenses deduction was expired at the time this publication was printed. If congress did not reinstate this deduction, you can't take it or the Oregon subtraction on your return.
 
Full-year residents. Oregon allows the deduction claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows a deduction for the qualified educator expenses you paid while you were an Oregon resident. Oregon also allows the amount of qualified educator expenses you paid while working in an Oregon elementary or secondary school during the part of the year you were a nonresident of Oregon. You may deduct the total you paid but not more than $250.
 
Nonresidents. Oregon allows a deduction for the qualified educator expenses you paid while working in an Oregon elementary or secondary school. You may deduct the total you paid but not more than $250.
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Fee-basis government officials

Full-year residents. Oregon allows the deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows a deduction for the employee business expenses you paid while you were an Oregon resident. Oregon also allows a partial deduction for the expenses you paid while you were a nonresident, if you had Oregon-source income. Use the formula below under Nonresidents to determine your nonresident deduction. Add these amounts together for your total deduction. Your total deduction for Oregon cannot be more than the deduction allowed on your federal return.
 
Nonresidents. Oregon allows a partial deduction for your employee business expenses paid for while you were a nonresident, if you had Oregon-source income. Use the formula below to determine your deduction. Your deduction for Oregon cannot be more than the deduction allowed on your federal return.

Oregon-source income while a nonresident
________________

x Employee business expenses paid while a nonresident = Nonresident deduction
Total income received while a nonresident
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Health Savings Account deduction

Full-year residents. Oregon allows the deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows a deduction for your Health Savings Account contribution made while you were an Oregon resident. Oregon also allows a partial deduction for your contribution while you were a nonresident if you had Oregon-source income. Use the formula below under Nonresidents to determine your nonresident deduction amount. Add these amounts together for your total deduction.
 
Nonresidents. Oregon allows a partial deduction for your Health Savings Account contribution while you were a nonresident if you had Oregon-source income. Use the formula below to determine your deduction.

Oregon-source income while a nonresident
________________

x Health Savings Account contribution made while a nonresident = Nonresident deduction
Total income received while a nonresident
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Interest penalty on early withdrawal of savings

Full-year residents. Oregon allows the same deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows the same deduction as federal does for your penalty related to interest taxed by Oregon.
 
Example: Liam claimed a deduction of $1,795 on his federal return. Only 30 percent of the interest income related to this penalty on early withdrawal is taxable by Oregon. Liam's Oregon deduction is also limited to 30 percent of the penalty, or $539.
 
Nonresidents. Because Oregon generally does not tax interest of a nonresident, there is no deduction for a nonresident.
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IRA or self-employed SEP and SIMPLE contributions

Full-year residents. Oregon follows the federal definition of earned income and compensation used to calculate your IRA and other retirement plan deductions. Oregon allows the same deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents and nonresidents. You may be limited in the amount of IRA or other retirement plan contributions you can deduct for Oregon. Use the formulas below to figure your deduction.
 
IRA formula. For the part of the year you were a nonresident, use the formula below to determine your Oregon deduction.

Oregon-source income while a nonresident
________________

x IRA contributions made while a nonresident = Nonresident deduction
Total income received while a nonresident

Add the amount you paid while an Oregon resident to your nonresident deduction. The deduction in the Oregon column is limited by:
 
  • The federal limitations, and
  • Income taxed by Oregon.
 
 
Self-employed simplified employee pensions (SEP), savings incentive match plan for employees (SIMPLE), and other qualified plans. Use the formula below to determine your Oregon deduction for the part of the year you were a nonresident.

Oregon-source income while a nonresident
________________

x Contributions made while a nonresident = Nonresident deduction
Total income received while a nonresident

Add the amount you paid while an Oregon resident to your nonresident deduction. The deduction in the Oregon column is limited by:
 
  • The federal limitations, and
  • Income taxed by Oregon.
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Moving expenses

OAR 150-316.127(3)(a)

Full-year residents. Oregon allows you the same deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows a deduction for your moving expenses only if they were connected to employment in Oregon.
 
Exception. Oregon allows you a deduction for moving expenses if they were paid after becoming an Oregon resident, even if they weren't connected to employment in Oregon.
 
Example 1: Helen moved from Seattle, Washington, to Portland, Oregon, to take a job in Portland. Her moving expenses are deductible for Oregon.
 
Example 2: Ezra moved out of Oregon to take a job in another state. His moving expenses are not deductible for Oregon.
 
Example 3: Becker moved from New Jersey to Oregon to take a job in California. He paid his moving expenses after he became a resident of Oregon. Becker may deduct his moving expenses although his employment is not in Oregon.
 
Nonresidents. Oregon allows this deduction only if your moving expenses were paid in connection to Oregon employment.
 
Example 4: Javier moved from Texas to Payette, Idaho, to take a job in Ontario, Oregon. His moving expenses are deductible for Oregon.
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Performing artists

Full-year residents. Oregon allows the deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows the deduction claimed on your federal return for expenses paid while you were an Oregon resident. Oregon also allows a partial deduction for these business expenses while you were a nonresident if you had Oregon-source income. Use the formula below under Nonresidents to determine your nonresident deduction amount. Add these amounts together for your total deduction.
 
Nonresidents. Oregon allows a partial deduction for your performing artist employee business expenses while you were a nonresident if you had Oregon-source income. Use the formula below to determine your deduction.

Oregon-source income while a nonresident
________________

x Performing artist employee business expenses paid while a nonresident = Nonresident deduction
Total income received while a nonresident
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Self-employed health insurance

This deduction is limited to earned income from your trade or business for which the insurance plan was established.
 
Full-year residents. Oregon allows you the same deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents and nonresidents. Oregon allows a deduction for 100 percent of your health insurance premiums related to your self-employment for the part of the year you were an Oregon resident. Add the health insurance premiums paid by an Oregon business from which you received self-employment income while a nonresident. Your total Oregon deduction cannot be more than your federal deduction and is limited to the earnings from self-employment reported in the Oregon column.
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Self-employment tax

Full-year residents. Oregon allows the deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.

Part-year residents and nonresidents. Oregon allows a deduction for self-employment tax related to earnings taxed by Oregon. The Oregon deduction cannot be more than the federal deduction. Use the following formula:

Self-employment earnings taxed by Oregon
________________ 		x Federal deduction for self-employment tax = Oregon deduction
Total self-employment earnings
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Student loan interest

Full-year residents. Oregon allows the deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows a deduction for the student loan interest you paid while you were an Oregon resident. Oregon also allows a partial deduction for student interest you paid while you were a nonresident if you had Oregon-source income. Use the formula below under Nonresidents to determine your nonresident deduction amount. Add these amounts together for your total deduction.
 
Nonresidents. Oregon allows a partial deduction for the student loan interest you paid while you were a nonresident if you had Oregon-source income. Use the formula below to determine your deduction.

Oregon-source income while a nonresident
________________

x Student loan interest paid while a nonresident = Nonresident deduction
Total income received while a nonresident
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Tuition and fees

Federal law change. The tuition and fees deduction was expired at the time this publication was printed. If congress did not reinstate this deduction, you can't take it or the Oregon subtraction on your return.
 
Full-year residents. Oregon allows the deduction you claimed on your federal return. The federal deduction flows through to your Oregon return via your federal adjusted gross income. You will not claim an additional deduction on your Oregon return.
 
Part-year residents. Oregon allows a deduction for the qualified tuition and fees you paid while you were an Oregon resident. Oregon also allows a partial deduction for your tuition and fees expense paid while you were a nonresident if you had Oregon-source income. Use the formula below to determine your nonresident deduction amount. Add these amounts together for your total deduction. Your total deduction for Oregon cannot be more than the federal limit.
 
Nonresidents. Oregon allows a partial deduction for the tuition and fees you paid while you were a nonresident if you had Oregon-source income.
 
Use the formula below to determine your deduction amount. Your total Oregon deduction cannot be more than the federal limit.

Oregon-source income while a nonresident
________________

x Federal deduction fortuition and fees = Oregon deduction
Total income received while a nonresident
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