Federal tax law

No extension to pay. Oregon does not allow an extension of time to pay your tax, even if the IRS is allowing an extension. Your 2012 Oregon tax is due April 15, 2013.

Federal law changes. The tuition and fees deduction and educator expenses deduction were expired at the time this publication was printed. If Congress did not reinstate these deductions, you cannot take them or the Oregon subtraction on your return.

Federal law connection. Oregon is tied to December 31, 2010 federal income tax laws. Oregon has a rolling tie to federal changes made to the definition of taxable income.*

* There are two exceptions to the rolling tie:

• IRC section 139A for Federal Subsidies for Prescription Drug Plans,
• IRC section 199 for Income Attributable to Domestic Production Activities, also known as Qualified Production Activity Income (QPAI).

Income under these sections is specifically exempt from tax on the federal return. If you have any of these types of income, you will have an addition on your Oregon tax return.

New information

Federal tax liability subtraction. The federal tax subtraction limit is $6,100 for 2012 and may be limited further based on adjusted gross income (AGI). See page 59.

Oregon 529 College Savings Network. Contribution limits have increased. See the Subtractions page for more information.

Direct deposit is here for Oregon 529. You may now have your refund deposited directly into an Oregon 529 college savings network account. You may choose up to four accounts. See our full-year and part-year/nonresident booklets for more information.

New tax credits. The Oregon low income community jobs initiative and wolf depredation credits are new for tax year 2012.

Tax credit auction. The Oregon production investment fund contribution credit has changed into a tax credit auction.

New payment option. See the General Information page for payment option information and instructions.

Important reminders

Active duty pay income. You may continue to subtract active duty pay income from your Oregon income if you earned it outside Oregon from August 1, 1990, through the date the president sets as the end of combat activities in the Persian Gulf. The president had not declared an end to combat activities when this publication was printed.

Payment options. The department accepts payment of tax by debit card, credit card, check, and money order. See the General Information page for information and instructions.

Direct deposit. Instead of receiving your refund check in the mail, you may have your refund deposited directly into your account at a bank, credit union, or other financial institution. You can also have your refund deposited directly into an Oregon 529 college savings network account. You may choose up to four accounts. See our full-year and part-year/nonresident booklets for more information.

Filling in codes. See our list of numeric codes to be used on the "Other additions," "Other subtractions," and/or "Other credits" lines on our forms. Returns cannot be processed without a valid numeric code entered in the appropriate box. Incorrect codes could cause a delay in processing. See the appendix for a list of current codes.

Minimum refund. Under Oregon law, the minimum refund check amount that can be issued is $1.

Minor child's return and signature. If your child must file a tax return, you may sign the child's name as his or her legal agent. Sign the child's name and then write "By [your signature], parent (or legal guardian) for minor child."

Deceased person's return and signature. You must file a final return for a person who died during the calendar year if a return would normally be required. If a return must be filed, please check the "deceased" box.

Are you filing a final return and claiming a refund for a deceased person?

If so, file Form 243, Claim to Refund Due a Deceased Person, with the return. Go to our website to download the form or contact us to order it.

If you are a court appointed personal representative or have filed a small estate affidavit and you need more information about trusts or estates, contact our estate unit.

You may also want to read our publication Survivor's Information. To download the publication, go to our website or contact us to order it.

Oregon tax credits. Most Oregon tax credits are limited to your tax liability. However, report the full amount of each credit on your return, even if you cannot use all of the credit this year. Some credits allow a carryforward of any unused amount. When you prepare your 2012 return, refer to the copy of your 2011 return to see if you have any unused credit to carry forward. See the Credits page to find out which credits you can carry forward to future years.