Oregon subtractions are items that are taxed on the federal personal income tax return but aren't taxed by Oregon or deductions Oregon allows that aren't allowed on your federal return. Some subtractions are claimed on your Oregon personal income tax return form itself. Other subtractions are claimed using a subtraction code on Schedule OR-ASC or Schedule OR-ASC-NP. Subtractions that are related to itemized deductions are claimed as modifications by part-year residents and nonresidents.
Subtractions claimed on the return
These subtractions are claimed on Form OR-40 (full-year filers), Form OR-40-N (nonresident filers), or Form OR-40-P (part-year filers):
Subtractions with codes
These subtractions are claimed using a subtraction code on Schedule OR-ASC (full-year filers) or Schedule OR-ASC-NP (part-year or nonresident filers):
Modifications
These subtractions are related to itemized deductions. They are claimed as modifications by part-year and nonresident filers using a modification code on Schedule OR-ASC-NP.