Oregon Federal Tax Liability Subtraction

KMD

I am a full-year Oregon resident filing Form OR-40. My Federal Form 1040, Line 16 shows a tax liability of $209, but my Oregon Form OR-40, Line 10 (Federal Tax Liability Subtraction) is currently blank/zero. I cannot find the specific screen in the Oregon interview to confirm or manually enter this amount. Please help!

MatthewD

Hello KMD,

Even if this was an option to deduct federal taxes in past years, it is not an option for 2025. The OR Schedule OR-A state the following:

Taxes you paid:
In general: You may deduct certain state or local income taxes or foreign income taxes you paid during the tax year, ...
Examples of taxes you can’t deduct:
• Oregon income tax.
• Contributions to, or benefits from, Paid Leave Oregon.
• Charitable contributions claimed as payments of Oregon
income tax.
• Income taxes paid to another state on which you’re basing
an Oregon credit.
• Oregon statewide transit tax.
• Federal income tax.

You can find more details in the OR Schedule OR-A instructions on page 2. https://www.oregon.gov/dor/forms/FormsPubs/schedule-or-a-inst_101-007-1_2025.pdf