Modification of Federal Taxable Income: Itemized vs. Standard Deduction

# (1)

(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)

(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)

(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.