Oregon Federal Tax Liability Subtraction
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!
Best Answer
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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.
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