Oregon DOR Issues Information on Reduction in State Federal Tax Subtraction on Income Tax Return

The Oregon Department of Revenue (DOR) Feb. 1 issued information on the reduction in the 2020 Oregon federal tax subtraction if taxpayers received their second federal stimulus payment in 2021 for individual income tax purposes. The DOR announced that the reduction of the federal income tax for a stimulus payment received in 2021 may reduce the subtraction on the 2020 state personal income tax return. The DOR provides a table that shows the effect of the stimulus payments in the calculation of the subtraction for: 1) single filers; 2) heads of household with one child under the age of 17; ...