Oregon Federal Tax Liability Subtraction

KMD
KMD Member Posts: 1 Newcomer
in State Filing

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!

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  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 877 image
    edited March 18 Answer ✓

    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

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