[Revenews] Oregon Stays Connected to Federal Extenders

[HOVEY Jackie * DOR]

As you may already know, the 2018 session of the Oregon Legislative Assembly has ended. The legislature didn't disconnect from the federal extenders in the "Bipartisan Budget Act of 2018<https://www.congress.gov/bill/115th-congress/house-bill/1892>" (HR 1892, Public Law 115-123). For the 2017 tax year, Oregon taxpayers may claim the Oregon tuition and fees subtraction (code 308 if they claimed the federal American Opportunity or Lifetime Learning credit). Taxpayers are also allowed to claim the itemized deduction for mortgage insurance premiums, and may exclude discharged debt on their principal residence from their taxable income. We are working with software vendors to make sure that these items will be available on all Oregon returns.

Specific instructions for the tuition and fees subtraction (code 308): We've identified all of the returns claiming the tuition and fees subtraction that the Department adjusted in processing prior to our system being updated. We're taking a second look at these returns-even if a written objection hasn't been filed-and will reverse the adjustment if the taxpayer qualifies to take the subtraction. This process should be completed by the end of March.  There is no need to file an amended return claiming the tuition and fees subtraction unless the taxpayer filed a return without including this item and now wants to claim it.

We apologize for any inconvenience that this delay has caused.

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