[Revenews] Federal Tax Extenders Impacting Oregon

[AYALA Marco * DOR]

On December 20, 2019, the President signed into law the Further Consolidated Appropriations Act, 2020 (Public Law 116-94). This act retroactively extended many federal tax breaks, commonly called tax extenders, to tax year 2018. A few of these items impact Oregon personal income tax returns, such as the tuition and fees deduction, the mortgage insurance premiums deduction, and the decrease in the adjusted gross income percentage floor for the medical expense deduction.

2019 Filings: The IRS recently announced a one-week delay in the tax year 2019 electronic returns submissions open-filing date, which will now be January 27, 2020. Oregon will follow suit and also open on January 27, 2020. All impacted 2019 forms and instructions have been updated and posted on our website. See https://www.oregon.gov/DOR/forms/Pages/default.aspx.

2018 Filings: Impacted 2018 forms will be updated over the next few weeks after the IRS releases their updated 2018 forms. Taxpayers who originally filed their 2018 returns claiming the tuition and fees subtraction and were recently billed do not need to file an amended return. Oregon will reverse the previous denial of this item. Taxpayers who did not claim a tuition and fees subtraction on their Oregon return will need to file an amended return. They should file their 2018 return first, wait a few weeks, and then submit their 2019 return. This will help the 2018 amended return process before the 2019 return, which would otherwise cause the 2019 Oregon surplus credit (kicker) to be adjusted.

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