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Personal Tax Overview for Tax Preparation Overview 2013

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 2013 Oregon tax is due April 15, 2014.

Federal law connection. Oregon is tied to January 3, 2013 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 $6,250 for 2013 and may be limited further based on adjusted gross income (AGI). See the Subtractions page.

Exemption credit. The exemption credit has changed. It is no longer allowed if your federal adjusted gross income exceeds the income threshold for your filing status.* Please see the Credits page for more details.  

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

Special Oregon medical deduction. The special Oregon medical deduction is no longer available. The deduction has been replaced with a subtraction (code 351) that is limited to a maximum of $1,800 per taxpayer age 62 or older on December 31, 2013 with qualifying medical and dental expenses.* See the Subtractions page for more details.

*Any penalty or interest charges that result solely from this change shall be waived. See the General Information page for instructions for submitting a waiver request for underpayment of estimated tax (UND).

Registered domestic partners. At the time this publication was printed, we were waiting for guidance on the impact of the U.S. Supreme Court’s decision regarding the Defense of Marriage Act on RDPs in Oregon. For updated information on the impact of that decision and how to file as RDPs, visit our website and select "Registered domestic partners in Oregon” under Taxpayer Tips.

New subtraction.  Oregon now allows a subtraction (code 352) for dividend payments received from a domestic international sales corporation (DISC). To claim the subtraction, the dividend payments must be included in your federal adjusted gross income. See the Subtractions page for more details.

New tax credit auction.  The Department of Revenue, in conjunction with the Department of Energy, can auction $3 million in tax credits from January 1, 2013 to January 1, 2015 for the Alternative Fuel Vehicle Fund. For information see the Credits page.


Important reminders

Military pay. You may continue to subtract military pay 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. See the General information page. 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 2013 return, refer to the copy of your 2012 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.