justicedao/ipfs_state_laws huggingface dataset:
150-316-0495 Estimated Tax: Joint Return to Single or Separate Return For estimated tax payments due for tax years beginning on or after January 1, 1988, in computing the required installment for the current year, the tax liability for the prior year may be used even though the current year is a single or separate return and the prior year's return is a joint return. The prior year's return must be filed timely including extensions and must cover 12 months. The prior year's tax will be allocated in the following manner: (1) Recompute the prior year's tax liability as if each spouse had filed a single or separate return; and (2) Multiply the joint tax liability for the prior year by a ratio of each spouse's single or separate liability to the combined single or separate liabilities. Example: Dan and Jessica filed a joint return for the calendar year 2008 showing taxable income of $63,000 and a tax after credits of $4,084. Of the $63,000 taxable income, $38,000 was attributable to Dan and $25,000 was attributable to Jessica. Dan and Jessica will file separate returns in 2009. The tax shown on the return for the preceding taxable year, for determining the required installments for 2009, is determined as follows: [Formula not included. See ED. NOTE.] [ED. NOTE: Formulas referenced are available from the agency.] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.587 History: Renumbered from 150-316.587(8)-(B), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 REV 4-2009, f. & cert. ef. 7-31-09 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88
150-316-0497 Estimated Tax: Single or Separate Returns to Joint Return For estimated tax payments beginning on or after Jan. 1, 1988, in computing the required instalment for the current year, the tax liability for the prior year may be used even though the current year is a joint return and the prior year’s returns are single or separate returns. This is done by combining the net income tax amounts from the previous year’s returns of both spouses. The previous year’s returns of both spouses must be filed timely including extensions, must have a tax liability, and must cover 12 months. Example: Al and Darlene filed separate income tax returns for the calendar year 1987, showing tax liabilities of $2,640 and $350, respectively. In 1988 they elected to file a joint return. For the purpose of determining the required instalment mentioned above, the previous year’s net income tax would be $2,990 ($2,640 plus $350). Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.587 History: Renumbered from 150-316.587(8)-(C), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88 12-31-87, Renumbered from 150-316.587(4)-(B) 10-5-87
150-316-0505 Oregon Lottery Winnings and Losses (1) For purposes of this rule: (a) “Oregon lottery losses” means the amount of wagering losses defined in Internal Revenue Code Section 165(d) that is attributable to the Oregon State Lottery which was includable in federal taxable income. (b) “Oregon lottery” means all games administered by the Oregon State Lottery Commission including those games jointly administered by Oregon and other states. (c) “Other wagering earnings” means the amount of wagering earnings that is included in Oregon taxable income. (2)(a) For purposes of Ch. 316, Oregon lottery winnings referred to in Ch. are not included in Oregon taxable income, if: (A) The ticket was purchased before January 1, 1998; or (B) The ticket was purchased on or after January 1, 1998 and the winnings from that ticket minus the purchase price are $600 or less. (b) Oregon lottery losses and other wagering losses are allowable for Oregon purposes to the extent that total wagering losses do not exceed total wagering earnings included in Oregon taxable income. Example: Angela is receiving lottery prize payments of $20,000 per year for the next 15 years from a Powerball ticket purchased before 1998. She also has winnings from three Oregon lottery tickets she bought after 1997. Those three tickets paid $300, $400 and $750, respectively. During the current year, Angela won $800 in other gambling winnings. She spent $1,000 on Oregon lottery tickets and had $1,300 in other gambling losses. Angela determines her net Oregon adjustment to be a subtraction of $19,950, as follows: [Table not included. See ED. NOTE.] [Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and 183.355(6).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.680 History: REV 51-2017, f. & cert. ef. 8-3-17 Renumbered from 150-316.680-(A), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 REV 7-1998, f. 11-13-98, cert. ef. 12-31-98 RD 7-1993, f. 12-30-93, cert. ef. 12-31-93 RD 12-1990, f. 12-20-90, cert. ef. 12-31-90 RD 12-1985, f. 12-26-85, cert. ef. 12-31-85
150-316-0511 Addition for Original Issue Discount (OID) (1) The “original issue discount” (OID), as defined in section 1273 of the Internal Revenue Code, is considered as paid in lieu of interest on state and municipal obligations of other states, and is taxable for Oregon purposes. (2) Holders of state and municipal bonds of other states (foreign states) shall include in income the sum of the daily portion of original issue discount determined for each day during the taxable year the bond is held. The original issue discount (OID) shall be prorated over the life of the bond using the federal rules for taxable securities under Section 1272 of the Internal Revenue Code and corresponding regulations. Example: On July 1, 1987, Jack purchased a California municipal bond for $800. The bond matures in two years and has a stated redemption price of $1,000. The bond contains $200 of original issue discount (stated redemption price of $1,000 less issue price of $800). Because the bond does not provide for periodic payments of interest, a six-month accrual period ending December 31 and June 30 of each calendar year is used to determine the semiannual yield factor of 5.74 percent ($800 compounded semiannually for two years at 5.74 percent is $1,000). The amount of the original issue discount included in income for the period ending December 31, 1987, is the issue price ($800), multiplied by the semiannual yield factor of 5.74 percent, or $45.90. The adjusted issue price (basis) at the beginning of the second accrual period is equal to the issue price plus the portion of original issue discount included in the first accrual period ($845.90 = $800 + $45.90). The includable original issue discount and basis is determined for each subsequent period in the same manner. [Table not included. See ED. NOTE.] [Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and ORS 183.355(6).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.680 History: REV 52-2017, f. & cert. ef. 8-3-17 Renumbered from 150-316.680(2)(a), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88
150-316-0513 Modification of Federal Taxable Income: Adding Interest or Dividends of the United States Exempted by Federal Income Tax Law Interest or dividend income attributable to obligations of any authority, commission, instrumentality or territorial possession of the United States, which by the laws of the United States is exempt from federal income taxation but not from state income taxation, shall be added to federal taxable income. Costs incurred to carry the income-producing securities may be deducted, to the extent those costs are not already deducted in arriving at federal taxable income. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.680 History: Renumbered from 150-316.680(2)(b), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85 RD 12-1984, f. 12-5-84, cert. ef. 12-31-84 12-31-83 12-70, Renumbered from 150-316.097(2)(b) 1-69
150-316-0515 Modification of Federal Taxable Income: Adding Federal Estate Tax Attributable to Income in Respect of a Decedent Not Taxable by Oregon The deduction allowed in the computation of federal taxable income for federal estate tax attributable to income in respect of a decedent must be added to federal taxable income to the extent that the deduction is allocable to income not taxable by Oregon. The federal estate tax deduction allowed in arriving at federal taxable income is computed in accordance with section 691(c) of the Internal Revenue Code and section 1.691(c)-1 of the Treasury Regulations. The amount thus computed must be allocated to the income in respect of a decedent not taxable by Oregon. The following formula will be used in determining the amount to be added to federal taxable income on the Oregon return: [See PDF link below.] [Publications: The publication(s) referred to or incorporated by reference in this rule is available from the office of the Secretary of State or Department of Revenue pursuant to ORS 183.360(2) and ORS 183.355(6).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.680 History: REV 31-2017, f. & cert. ef. 7-21-17 Renumbered from 150-316.680(2)(c), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91 12-31-83 12-31-80, Renumbered from 150-316.067(2)(c) 11-73, Renumbered from 150-316.067(2)(g)
150-316-0519 Gain or Loss Upon the Sale of State and Municipal Bonds of Other States (Foreign States) (1) Holders of state and municipal bonds of other states (foreign states) shall determine the gain or loss upon the sale or disposition of the bonds by following the federal rules for taxable securities under Internal Revenue Code sections 1271 to 1283 inclusive. (2) Adjusted Issue Price: The adjusted issue price or basis of the bonds shall be the issue price increased by the total amount of original issue discount (OID) included in Oregon taxable income using the rules for federal taxable securities in section 1272 of the Internal Revenue Code and corresponding regulations. See OAR 150-316-0511 for example. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.680 History: Renumbered from 150-316.680(5), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88
150-316-0525 U.S. Government Interest in Retirement Accounts (1) Interest or dividends on U.S. obligations under ORS 316.680(1)(a) included in distributions from self-employed plans or individual retirement accounts as described under sections 401 to 408 of the Internal Revenue Code shall be subtracted from federal taxable income to determine Oregon taxable income. (2) Annuities: The amount of the subtraction shall be determined by applying a “state exempt-interest ratio” to distributions received as annuity payments to the extent the payments are included in federal adjusted gross income for the taxable year. The “state exempt-interest ratio” is the year-to-date balance of qualifying interest or dividends under ORS 316.680(1)(a) included in the account balance prior to the current year distribution divided by the account balance prior to the current year distribution. The year-to-date balance of qualifying interest or dividends is equal to the cumulative total of those earnings less any prior year’s subtraction. The ratio shall be applied on the later of the annuity starting date or the date on which the taxpayer established residency. The annuity starting date shall be the date determined under Treas. Reg. Section 1.72-4(b). To see the formula and several examples, along with illustrative tables, for this rule click on the PDF link. (3) Lump-sum distributions: For lump-sum distributions from individual retirement accounts and self-employed retirement plans, the subtraction shall be equal to the total qualifying interest under ORS 316.680(1)(a) included in the account balance at the time of distribution. (4) Change of status from nonresident to resident: Nonresidents who become residents sometime after the annuity starting date shall use the same formula for computation of the ratio as if they were residents at the annuity starting date. For purposes of the formula shown in subsection (2)(a), “a” will equal the year-to-date balance of qualifying interest or dividends which is equal to the cumulative total of those earnings less any prior years deemed or actual subtraction. [Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and ORS 183.355(6).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.681 History: REV 40-2020, amend filed 12/23/2020, effective 01/01/2021 REV 53-2017, f. & cert. ef. 8-3-17 Renumbered from 150-316.681, REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 5-1997, f. 12-12-97, cert. ef. 12-31-97 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88
150-316-0530 Pool of Assets that Qualify to Pay State Exempt-Interest Dividends As used in ORS 316.683(1), a “pool of assets” means funds that are managed by financial institutions acting in a fiduciary capacity for the benefit of trust beneficiaries. Financial institutions shall include, but not be limited to banks, savings associations, or credit unions. The pool of assets need not be incorporated as a regulated investment company in order to pay state exempt-interest dividends to its beneficiaries. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.683 History: Renumbered from 150-316.683(1), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88
150-316-0537 Adjustment of Federal Tax Liability The federal tax liability accrued shall be the correct federal tax based on all information on the return. If, during processing, the Department recomputes and adjusts the federal tax liability, the adjusted tax shall be the amount accrued for that year. Example 1: Because of a computation error on their joint federal return, A and B overstated their federal tax liability on both their federal and Oregon returns. When the Department processed the return, the federal tax liability was recomputed and reduced from the $500 reported on the return to $300. The $300 is the 1979 tax accrued and deducted in 1979. If the taxpayers receive a federal refund for the same $200, that amount should not be added to income in the year received. Example 2: On their 1979 return, A and B claimed a federal tax subtraction of $1,000, which was the amount of federal tax withheld from their wages. Their federal tax liability was actually $2,500. When the Department processes the return, the federal tax deduction shall be increased to $2,500. Example 3: A and B claimed a federal tax deduction of $5,000 for 1979. When their Oregon return was processed, the Department computed their correct federal tax liability to be $6,000. Their 1979 federal tax accrued in 1979 is $6,000. In 1980, they are required to pay the additional federal tax of $1,000. Since the taxpayers have already received a benefit for the additional 1979 tax, they cannot deduct it in 1980. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.685 History: Renumbered from 150-316.685(2), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 12-31-83 5-20-80, Renumbered from 150-316.072(2) 12-18-79(Temp)
150-316-0545 Election to Include Child’s Unearned Income — Addition Required An addition to federal taxable income is required for taxpayers who elect to include a minor child’s unearned income on their federal return. For federal purposes, unearned income in excess of a dependent’s standard deduction, but less than twice that amount, is taxed at a special rate on a separate schedule and is not included in taxable income of the parent. For Oregon, this amount must be added to federal taxable income. The excess unearned income already included in the parent’s federal taxable income requires no addition to the parent’s return. Example 1: Bob and Phyllis file a joint federal return for tax year 1997. Their son Ray has $1,700 interest income from a trust account. Bob and Phyllis elect to include Ray’s unearned income in excess of the $650 exclusion on their 1997 federal return. For federal purposes, $650 is taxed at a special rate and $400 is included in taxable income. For Oregon, Bob and Phyllis must add $650 to federal taxable income. This is the $650 of Ray’s unearned income that was taxed at the special federal rate. Since the remaining $400 is included in federal taxable income, no addition is required for this amount. Example 2: Assume the same facts above, except that Ray’s unearned income is only $750. For federal purposes, Bob and Phyllis exclude the first $650. The remaining $100 is taxed at the special federal rate. For Oregon, Bob and Phyllis must add $100 to federal taxable income. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.687 History: Renumbered from 150-316.687, REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 5-1997, f. 12-12-97, cert. ef. 12-31-97 RD 7-1989, f. 12-18-89, cert. ef. 12-31-89
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). Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.695 History: REV 9-2023, minor correction filed 03/14/2023, effective 03/14/2023 Renumbered from 150-316.695(1), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 5-1997, f. 12-12-97, cert. ef. 12-31-97 RD 7-1989, f. 12-18-89, cert. ef. 12-31-89 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87 12-31-83 12-31-80, Renumbered from 150-316.068(1)
150-316-0557 Modification of Federal Taxable Income: Oregon Income Tax Claimed as an Itemized Deduction Beginning in tax year 1991, if the taxpayer itemizes deductions for Oregon, the itemized deductions will be subject to the same phase-out requirement as required for federal income tax purposes under IRC Section 68. Oregon law allows federal itemized deductions, after the phase-out, reduced by any Oregon income tax that has been itemized for federal income tax purposes. To determine the amount of phased-out Oregon income tax that must be removed from total itemized deductions, taxpayers will use the following formula: [Formula not included. See PDF link below.] [Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and ORS 183.355(6).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.695 History: REV 81-2017, minor correction filed 12/28/2017, effective 12/28/2017 REV 57-2017, f. & cert. ef. 8-8-17 Renumbered from 150-316.695(1)(c)-(A), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91
150-316-0559 Modification of Federal Taxable Income: Previously Taxed Contributions to Pension or Annuity If part of the contributions toward the purchase of a pension or annuity was taxed by the state of Oregon and not taxed by the federal government, that part taxed by Oregon shall be subtracted from federal taxable income on the Oregon return. The subtraction allowed by this section shall be taken each year to the extent any amount is included in federal taxable income until the total amount taxed by Oregon and not taxed by the federal government in years beginning prior to January 1, 1969, has been recovered. Thereafter, the distribution will be taxed for Oregon income tax purposes in the same manner and amount as taxed for federal purposes. Example: A retired employee began receiving benefits from a pension plan on January 1, 1975. In tax years beginning prior to January 1, 1969, Oregon taxed $3,000 of the contributions to the pension plan. None of the contributions were taxed for federal purposes. The taxpayer is receiving $2,000 each year, all of which is taxable for federal purposes. In 1975 the taxpayer will subtract $2,000 and in 1976 $1,000 from federal taxable income in arriving at Oregon taxable income. In subsequent years, Oregon will tax the same amount taxed for federal purposes. This section applies to tax years ending on or after September 13, 1975. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.695 History: Renumbered from 150-316.695(2), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91, Renumbered from 150-316.695(3) RD 11-1988, f. 12-19-88, cert. ef. 12-31-88 12-31-83 12-19-75, Renumbered from 150-316.068(3)
150-316-0569 Adjustment to Income for Basis Differences On the return for the first taxable year beginning after December 31, 1995, federal taxable income shall be increased or decreased by an amount equal to the difference between the property’s adjusted federal basis as determined for regular tax purposes and its adjusted Oregon basis due to the use of different federal and Oregon depreciation methods, periods, or conventions, as defined by IRC 168. If the adjusted Oregon basis is less than the adjusted federal basis, the modification shall be an addition. If the adjusted Oregon basis is greater than the adjusted federal basis, the modification shall be a subtraction. For tax years beginning after December 31, 1996, no modifications to depreciation expense shall be made as a result of using different depreciation methods, periods, or conventions prior to January 1, 1996. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.707 History: Renumbered from 150-316.707(1)-(C), REV 64-2016, f. 8-15-16, cert. ef. 9-1-16 RD 3-1995, f. 12-29-95, cert. ef. 12-31-95