What's new in Withholding forms?
Because of recent changes to federal Forms W-4 and W-4P, Oregon has a separate withholding statement for state personal income tax withholding. New federal Form(s) W-4 submitted to employers after January 1, 2020, can no longer be used to determine Oregon withholding. Please click here for more information
What's new in Subtractions and Credits?
- Federal tax liability subtraction: The federal tax subtraction limit is $6,950 ($3,475 if married filing separately) for 2020. It may be limited further based on your adjusted gross income (AGI).
- Earned Income Credit: If a taxpayer qualifies for the federal earned income credit, you are able to claim 9% of the federal credit amount as an Oregon credit. Also, if you have a child under the age of 2 and qualify for the federal earned income credit, you may claim 12% of the federal credit as an Oregon credit.
- Political Contribution Credit: Oregon has lowered the AGI limit for claiming this credit. Taxpayers filing as married filing joint, the AGI limit is $150,000. The AGI limit for all other taxpayers is $75,000.
- Oregon 529 College Savings Network and ABLE account credits: Contributions made on or after January 1, 2020 may be claimed.
For more information, please review the Oregon Instructions.