Chapter 150-316

150-316-0015 Adoption of Federal Law With the adoption of the Personal Income Tax Act of 1969, Oregon personal income tax law was tied to the Federal Internal Revenue Code of 1954 with certain modifications. However, there have been periods during which Oregon law did not automat…

150-316-0020 Tax Reform Act of 1984 Adjustments (1) Any adjustments to a taxpayer’s 1984 Oregon taxable income due to modifications required under ORS 316.021 shall be made using either of the following methods: (a) The taxpayer may amend the 1984 Oregon tax return and include su…

150-316-0025 Definition: “Resident” (1) For purposes of ORS 316.027(1): (a) “Domicile” means the place an individual considers to be the individual’s true, fixed, permanent home. Domicile is the place a person intends to return to after an absence. A person can only have one domi…

150-316-0027 Status of Individuals in a Foreign Country (1) General. For purposes of ORS Chapter 316, a nonresident includes a person who is a foreign nonresident as defined by this rule. (2) “Foreign nonresident” means: (a) An individual who is a “qualified individual” under Int…

150-316-0035 Oregon Net Operating Losses — Treatment After 1984 (1) Applicability of this rule. This rule applies to the computation of a net operating loss (NOL) occurring in loss years beginning after December 31, 1984; and a net operating loss deduction (NOLD) allowed or allow…

150-316-0040 Administrative and Judicial Interpretations As used in ORS 316.032(2) “administrative and judicial interpretations of the federal income tax law” include interpretive regulations promulgated by the Secretary of the Treasury, Revenue Rulings and Revenue Procedures iss…

150-316-0043 Qualified Business Income Reduced Tax Rate (QBIRTR) (1) Definitions. For purposes of ORS 316.043 and this rule: (a) “Employee” means an individual in the service of another under any contract of hire, express or implied, oral or written, where the person for whom the…

150-316-0045 Taxable Income of Nonresidents and Part-year Residents (1) The taxable income of a nonresident is the taxpayer's federal taxable income from Oregon sources as defined in ORS 316.127, with the modifications provided in ORS Chapter 316 and other Oregon laws as they rel…

150-316-0050 Farm Capital Gain (1) Definitions. For purposes of ORS 316.045 and this rule: (a) “Substantially complete termination” means the taxpayer is: (A) No longer involved, directly or indirectly, in a trade or business engaged in farming, or (B) No longer owns, directly or…

150-316-0055 Transitional Provision to Prevent Doubling Income or Deductions (1) This section allows and requires adjustments to the taxpayer’s net income to alleviate inconsistent treatment of income and deductions resulting from the transition from the Personal Income Tax Act o…

150-316-0060 Taxable Income of Resident (1) Definition. The taxable income of a resident of this state is taxable income as defined in the laws of the United States, modified and adjusted by ORS Chapter 316 and other laws of this state applicable to personal income taxation. Such…

150-316-0065 Social Security and Railroad Retirement Benefits Eligible for Subtraction A subtraction from federal taxable income is allowed for social security and tier I railroad retirement benefits as defined under Internal Revenue Code Section 86. Other benefits paid by the Ra…

150-316-0080 Credit for Income Taxes Paid to Another State (1) General: A taxpayer may claim a credit against income tax imposed under Chapter 316 when: (a) Another state has jurisdiction to impose an income tax; and (b) The other state imposes an income tax on an item of income …

150-316-0082 Credit for Taxes Paid to Another State When Paid by a Pass-Through Entity (1) An individual who owns an interest in a pass-through entity may claim a credit for tax paid to another state by the entity if: (a) The individual is an Oregon resident; (b) The portion of t…

150-316-0084 Credit for Income Taxes Paid to Another State — Computation (1) General: This rule explains the computation of the credit for taxes paid to another state on mutually taxed income. (a) Residents: An Oregon resident is allowed a credit for taxes paid to another state o…

150-316-0086 Credit for Income Taxes Paid to Other States — Proof Required and Procedure for Obtaining the Credit (1) The taxpayer must retain in their tax records and provide to the department upon request the following items: (a) A complete copy of the other state’s income tax …

150-316-0088 Addition of Taxes Paid to Another State Claimed as an Itemized Deduction (1) If a taxpayer claims a credit for taxes paid to another state and the tax is also included as an itemized deduction, the taxpayer must restore to Oregon income the lesser of: (a) The amount …

150-316-0090 Credit for Duplicative State Taxation Relating to Different Years (1) If Oregon and another state impose a tax on the same income in different years or the other state’s tax is due in a year subsequent to the year or years to which it was originally related, the taxp…

150-316-0115 Disabled Child Exemption Credit (1) For tax years beginning on or after January 1, 2005, an additional personal exemption credit is allowed for dependent children who are disabled on the last day of the tax year. (2) For tax years beginning before January 1, 2005, an…

150-316-0120 Credit for Political Contributions (1) In General: To qualify for the political contribution credit, the contribution must be a voluntary contribution of money made to one of the following: (a) A major political party or its political committees, or a minor political…

150-316-0125 Credit for the Gain on the Sale of a Residence Taxed by Another State A credit will be allowed if the gain on the sale of a taxpayer’s personal residence is taxed by both Oregon and another state or country. The credit is the lesser of: (1) Mutually taxed gain: [See …

150-316-0130 Credit for Installation of Alternative Energy Devices (1) As provided by ORS 469B.103, the Oregon Department of Energy administers provisions related to the eligibility, verification and certification of an alternative energy device for purposes of the tax credit und…

150-316-0135 Proration of Income and Deductions for Nonresidents and Part-Year Residents (1) As used in this rule, “fraction” means the Oregon percentage. The Oregon percentage is the fraction established for proration under ORS 316.117. (2) For tax years beginning on or after Ja…

150-316-0136 Nonresident Deductions Limited to Oregon Sources (1) Nonresident individuals who are allowed the following deductions for federal purposes shall also be allowed a deduction, not to exceed 100 percent of the federal deduction, for Oregon purposes: (a) Tips under IRC 2…

150-316-0145 Proration for Pass-through Entity Income of Part Year Oregon Residents A part-year Oregon resident with an ownership interest in a partnership or S corporation includes in Oregon adjusted gross income the sum of: (1) All income derived from the ownership interest whi…

150-316-0150 Separate or Joint Federal Returns for Spouses in a Marriage (1) For tax years beginning on or after January 1, 1987, ORS 316.122 contains exceptions to the general rule that the filing status of the federal return, whether joint or separate, determines the filing sta…

150-316-0155 Nonresident Partners: Guaranteed Payments (1) Guaranteed payments paid to nonresident partners of a partnership that has business activity in the state of Oregon are treated as a distributive share of partnership income for Oregon tax purposes. In order to determine …

150-316-0157 Nonresident Partners: Other Methods of Allocation and Apportionment (1) ORS 314.605 to 314.667 are designed to allocate and apportion to Oregon, in a fair and equitable manner, a nonresident partner’s items of partnership income, gain, loss and deduction attributable…

150-316-0165 Gross Income of Nonresidents; Personal Services (1) Personal service. (a) Except as provided in section (2) of this rule, the gross income of a nonresident (who is not engaged in the conduct of the nonresident's own trade or business, but receives compensation for se…

150-316-0167 Gross Income of Nonresidents; Pensions and Retirement Income Received by Oregon Domiciliaries The provisions of this rule apply to pension and retirement income received after December 31, 1999, by persons who are domiciled in Oregon but who are taxed as nonresidents…

150-316-0169 Gross Income of Nonresidents; Apportionable Income (1)(a) General. The gross income of a nonresident (other than one who is employed by another, as distinguished from doing business on the nonresident’s own account) from a business, trade, profession or occupation (i…

150-316-0171 Gross Income of Nonresidents; Other Income and Sale of Property (1) Income from intangible personal property. (a) Business situs. Intangible personal property, including money or credits, of a nonresident has a situs for taxation in Oregon when used in the conduct of…

150-316-0173 Gross Income of Nonresidents; Federal Laws Affecting Nonresident Employees of Motor, Rail, Air and Water Carriers (1) General: Various federal laws affect the application of Oregon tax laws to nonresident employees of motor carriers, rail carriers, and air carriers. …

150-316-0175 Gross Income of Nonresidents; Compensation Received by Nonresident Professional Athletes (1)(a) General. Oregon source income of a nonresident individual who is a member of a professional athletic team includes that portion of such individual’s total compensation for…

150-316-0179 Student Loan Interest Deduction — for Part-Year and Nonresidents Individuals who are allowed a deduction for student loan interest for federal purposes shall be allowed a deduction for Oregon purposes. The allowable Oregon deduction is limited to a percentage of the …

150-316-0181 Moving Expense Deduction — for Part-year and Nonresidents (1) Moving expenses must be deductible on the federal return to be deducted on the Oregon return. (2) To be deductible from the Oregon portion of federal adjusted gross income, moving expenses must be connecte…

150-316-0183 Gross Income of Nonresidents; Retirement Income Derived from Oregon Sources (1) Federal law (PL 104-95) prohibits states from taxing retirement income received after December 31, 1995, by individuals who are not residents of this state or who are not domiciled in thi…

150-316-0185 Gross Income of Nonresidents: Waterway Workers (1) General Policy. The State of Oregon imposes taxes on Oregon source income of nonresidents to the extent allowed under Oregon and federal law and exempts Oregon source income of nonresidents to the extent provided und…

150-316-0195 Alimony Deduction — for Part-Year and Nonresidents (1) For divorce decrees and separation agreements entered into before January 1, 2019, this rule still applies unless the divorce decree or separation agreement is modified after December 31, 2018, and expressly stat…

150-316-0197 Nonresident Deduction for Contributions to IRA, Keogh, or Qualified Medical Savings Accounts (1) Nonresident individuals who are allowed a deduction for contributions made to Keoghs, SEPs, individual retirement accounts (IRAs), and qualified savings accounts (MSA) fo…

150-316-0205 Credit for Taxes Paid to State of Residence (1) General: An Oregon nonresident is allowed a credit for taxes paid to the state of residence if the taxpayer’s state of residence allows residents of Oregon to claim a credit for mutually taxed income on the nonresident …

150-316-0225 Retirement Income Credit (1) Definitions. (a) Retirement Income. Retirement income includes distributions from any: (A) U.S. Government pension; (B) State public pension; (C) Employee pension benefit plan; (D) IRA or KEOGH; (E) Deferred compensation plan; (F) Employe…

150-316-0230 Subtraction for Previously Taxed Contributions (1)(a) For tax years beginning on or after January 1, 1991, Oregon will allow resident taxpayers a subtraction for distributions from an individual retirement account, Keogh plan or Simplified Employee Pension plan for t…

150-316-0234 “Withholding Statement” and “Exemption Certificate” (1) For purposes of ORS 316.177 and ORS 316.182: (a) “Exemption certificate” means a form prescribed by the department containing an employee’s instruction to an employer certifying that the employee has no Oregon w…

150-316-0235 Withholding: Basis of Amount Withheld (1) Remuneration includes merchandise, stocks, bonds, room, board, or other consideration passing to the employee in payment for services. (2) The cash value must be based upon sound principles and the department reserves the rig…

150-316-0237 Employees Exempt from Withholding (1) Expiration for election. An election for exemption from withholding expires on February 15 of the calendar year following the year of the election. An individual must provide a new exemption certificate to the employer to claim a…

150-316-0239 Withholding on Fringe Benefits (1) A fringe benefit is not subject to withholding for Oregon purposes if it is not subject to Oregon income tax. (2) When a fringe benefit is subject to withholding, the rate of withholding is determined by Oregon withholding tax table…