ORS Chapter 316 — Personal Income Tax

ORS 316.147. Definitions for ORS 316.147 to 316.149. As used in ORS 316.147 to 316.149, unless the context requires otherwise: (1) Eligible taxpayer includes any individual who must pay taxes otherwise imposed by this chapter and: (a) Who pays or incurs expenses for the care of a qualified individual, through a payment method determined by rule of the Department of Revenue; and (b) Who has a household income, for the taxable year, not to exceed the maximum amount of household income allowed in ORS 310.640 (1989 Edition) for a homeowner or renter refund. (2) Household income means the aggregate income of the eligible taxpayer and the spouse of the taxpayer who reside in the household, that was received during a calendar year. Household income includes payments received by the eligible taxpayer or the spouse of the taxpayer under the federal Social Security Act for the benefit of a minor child or minor children who reside in the household. (3) Income means adjusted gross income as defined in the federal Internal Revenue Code, as amended and in effect on December 31, 2022, even when the amendments take effect or become operative after that date, relating to the measurement of taxable income of individuals, estates and trusts, with the following modifications: (a) There shall be added to adjusted gross income the following items of otherwise exempt income: (A) The gross amount of any otherwise exempt pension less return of investment, if any. (B) Child support received by the taxpayer. (C) Inheritances. (D) Gifts and grants, the sum of which are in excess of $500 per year. (E) Amounts received by a taxpayer or spouse of a taxpayer for support from a parent who is not a member of the taxpayers household. (F) Life insurance proceeds. (G) Accident and health insurance proceeds, except reimbursement of incurred medical expenses. (H) Personal injury damages. (I) Sick pay that is not included in federal adjusted gross income. (J) Strike benefits excluded from federal gross income. (K) Workers compensation, except for reimbursement of medical expense. (L) Military pay and benefits. (M) Veterans benefits. (N) Payments received under the federal Social Security Act that are excluded from federal gross income. (O) Welfare payments, except as follows: (i) Payments for medical care, drugs and medical supplies, if the payments are not made directly to the welfare recipient; (ii) In-home services authorized and approved by the Department of Human Services; and (iii) Direct or indirect reimbursement of expenses paid or incurred for participation in work or training programs. (P) Nontaxable dividends. (Q) Nontaxable interest not included in federal adjusted gross income. (R) Rental allowance paid to a minister that is excluded from federal gross income. (S) Income from sources without the United States that is excluded from federal gross income. (b) Adjusted gross income shall be increased due to the disallowance of the following deductions: (A) The amount of the net loss, in excess of $1,000, from all dispositions of tangible or intangible properties. (B) The amount of the net loss, in excess of $1,000, from the operation of a farm or farms. (C) The amount of the net loss, in excess of $1,000, from all operations of a trade or business, profession or other activity entered into for the production or collection of income. (D) The amount of the net loss, in excess of $1,000, from tangible or intangible property held for the production of rents, royalties or other income. (E) The amount of any net operating loss carryovers or carrybacks included in federal adjusted gross income. (F) The amount, in excess of $5,000, of the combined deductions or other allowances for depreciation, amortization or depletion. (G) The amount added or subtracted, as required within the context of this section, for adjustments made under ORS 316.680 (2)(d) and 316.707 to 316.737. (c) Income does not include the following: (A) Any governmental grant that must be used by the taxpayer for rehabilitation of the homestead of the taxpayer. (B) Any refund of Oregon personal income taxes that were imposed under this chapter. (4) Qualified individual includes an individual at least 60 years of age on the date that the expenses described in subsection (1)(a) of this section are paid or incurred by the eligible taxpayer: (a) Whose household income does not exceed $7,500 for the calendar year in which the taxable year of the taxpayer begins; (b) Who is eligible for authorized services as defined in ORS 410.410 under Oregon Project Independence; (c) Who is certified by the Department of Human Services; and (d) Whose care or any portion thereof is not paid for under ORS chapter 414.