Yes.
Oregon allows taxpayers to choose the deduction method that provides the greatest tax benefit on their Oregon return, regardless of the method used on the federal return. If you claimed the federal standard deduction, you may still choose to itemize deductions for Oregon purposes if your Oregon itemized deductions are greater than the Oregon standard deduction. You may claim either your Oregon standard deduction or your net Oregon itemized deductions, whichever is greater, but not both.
To claim Oregon itemized deductions when you did not itemize on your federal return, enter your deduction information in the federal itemized deduction section of the program. The applicable amounts will automatically flow to the Oregon return, and the program will calculate and apply the deduction method that results in the greater tax benefit. Use the entries below to make any Oregon-specific adjustments to the itemized deductions transferred to your return.
Where Do I Enter This?
To enter Oregon itemized deductions:
- Go to State
- Select the three horizontal dots (Edit)
- Select Itemized Deductions
Enter any Oregon-specific adjustments or deductions that apply.
How Does Oregon Determine My Deduction?
Oregon generally allows you to claim whichever is larger:
- Your Oregon standard deduction, or
- Your Oregon itemized deductions.
Oregon itemized deductions use many federal itemized deduction rules and limitations, but Oregon may require certain additions, reductions, or adjustments.
What Else Do I Need to Know?
If you file a Married Filing Separate (MFS) return, both spouses generally must use the same deduction method (standard or itemized) unless they lived apart for the entire tax year.
In addition:
- Oregon's itemized deductions are calculated separately from federal itemized deductions.
- Oregon may allow itemized deductions even when the federal return uses the standard deduction.
- Some Oregon-specific adjustments may be required when completing the Oregon Itemized Deductions section.
Notes
- You cannot claim both the Oregon standard deduction and Oregon itemized deductions.
- Oregon allows the deduction method that results in the greater Oregon tax benefit.
- Keep records supporting any itemized deductions claimed on the Oregon return.