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;
(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;
(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 (Additional modifications of taxable income).
(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 (Additional modifications of taxable income)(7) if they are blind or age 65 or older.
Rule 150-316-0555 — Modification of Federal Taxable Income: Itemized vs. Standard Deduction,