Oregon Income Tax Rates for 2025

You exercised the option on January 7, 2023, when the stock was selling on the open market for $12 a share. Although you held the stock for more than a year, less than 2 years had passed from the time you were granted the option. In 2024, you must report the difference between the option price ($10) and the value of the stock when you exercised the option ($12) as wages. The rest of your gain is capital gain, figured as follows.

e-Filing: Submit Your Oregon Tax Return Online

The state of Alaska sends each recipient a document that shows the amount of the payment with the check. To determine if amounts recovered in the current year must be included in your income, you must know the standard deduction for your filing status for the year the deduction was claimed. Look in the instructions for your tax return from prior years to locate the Catch Up Bookkeeping standard deduction for the filing status for that prior year. If you filed Form 1040-NR, you couldn’t claim the standard deduction except for certain nonresident aliens from India (see Pub. 519).

• In most cases, the beneficiary doesn’t include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified higher education expenses.
• A subtraction for federal income tax paid is limited for the 2024 tax year to $8,250 per return, or $4,125 for married filing separate status.
• Don’t subtract the refund amount from the interest you paid in 2024.
• Certain Medicaid waiver payments are treated as difficulty-of-care payments when received by an individual care provider for caring for an eligible individual (whether related or unrelated) living in the provider’s home.
• The election must be made no later than 30 days after the first date the rights of the employee in such stock are transferable or aren’t subject to a substantial risk of forfeiture, whichever occurs earlier.
• You can find information on IRS.gov/MyLanguage if English isn’t your native language.

Oregon Income Taxes

You report the incentive oregon income tax rate payments on Schedule 1 (Form 1040), line 8z. Don’t include in your income any payment you receive under the National Historic Preservation Act to preserve a historically significant property. If you sell an interest in an expected inheritance from a living person, include the entire amount you receive in gross income on Schedule 1 (Form 1040), line 8z. If you’re paid to maintain space in your home for emergency foster care, you must include the payment in your income. Treat each item of income the same way that the estate or trust would treat it.

Return due in 2023

For example, if you use an accrual method, you’re entitled to the deduction or credit in the tax year in which the obligation for the repayment accrues. You can’t deduct the reimbursed expenses, even if you’re reimbursed in a later year. If you’re reimbursed for lost salary, you must include that reimbursement in your income. For tax years beginning after 2017, you can no longer deduct job-related expenses or other miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income floor. If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. Report it as explained in the Instructions for Schedule D (Form 1040).

C corporation minimum tax and tax rates

If your employer provides you with the free or low-cost use of an employer-operated gym or other athletic club on your employer’s premises, the value isn’t included in your compensation. The gym must be used primarily by employees, their spouses, and their dependent children. You can make a one-time distribution from your individual retirement arrangement (IRA) to an HSA and you generally won’t include any of the distribution in your income. 590-B for the requirements for these qualified HSA funding distributions. The only exception is for purposes of figuring your self-employment tax if you’re self-employed. For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case.

In most cases, the beneficiary doesn’t include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified higher education expenses. You should receive a Form W-2 showing payments for services performed as an election official or election worker. Report payments for these services on Schedule C (Form 1040). See the separate Instructions for Schedule SE (Form 1040) for details. If you aren’t an employee and the fees for your services from a single payer in the course of the payer’s trade or business total $600 or more for the year, the payer should send you Form 1099-MISC. If any of your benefits are taxable, you must use Form 1040 or 1040-SR to report the taxable part.

Publication 525 – Additional Material

Food and beverages that are provided during entertainment events won’t be considered entertainment if purchased separately from the event. The exclusion applies only to debt discharged after 2006 and in most cases before 2026. The maximum amount you can treat as QPRI is $750,000 ($375,000 if married filing separately). You can’t exclude debt canceled because of services performed for the lender or on account of any other factor not directly related to a decline in the value of your residence or to your financial condition. If the interest would not be deductible (such as interest on a personal loan), include in your income the amount from box QuickBooks 2 of Form 1099-C. If the interest would be deductible (such as on a business loan), include in your income the net amount of the canceled debt (the amount shown in box 2 less the interest amount shown in box 3).

Oregon state income tax rates

Residents of the greater Portland metro area also have to pay local income tax. However, the Beaver State also has no sales taxes and below-average property taxes. A subtraction for federal income tax paid is limited for the 2024 tax year to $8,250 per return, or $4,125 for married filing separate status. Other subtractions include Social Security and Railroad Retirement Board benefits, which Oregon does not tax, and interest from U.S. government obligations like Treasury bills and savings bonds. Whether you’re a W-2 employee contributing to a 401(k) or a freelancer managing business expenses, this tax calculator adapts dynamically to your employment type and filing status. We account for standard deductions, pre-tax retirement and health savings contributions, and other deductions you may be eligible for.

Is there an Oregon subtraction for the employee retention credit (ERC), which reduces payroll taxes?

You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. Pay you receive from your employer while you’re sick or injured is part of your salary or wages. In addition, you must include in your income sick pay benefits received from any of the following payers. If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. This amount is included in your wages shown in Form W-2, box 1.