Tax Prep Study (Part 9: Oregon) Questions and Correct Answer
1. (Oregon) T/F: On your federal Schedule B, it shows that you received nontax-
able interest from: the City of San Francisco, CA; the City of Seattle, WA; and the
City of Medford, OR. You have no additions on your Oregon return. ANSWER
F
Nontaxable interest is from muni bonds. Interest from out-of-state munis is taxable by Oregon and is entered on Form
40 line 9.
2. (Oregon) (T/F) When electronically filing your Oregon return, you do not need
to file Form EF if you are using a Federal PIN. ANSWERS T
Form EF is only required when doing a "state-only" electronic filing and the associated federal return does not match
the federal return already filed.
3. (Oregon) Tia and Colin are married. Colin is a full-year OR resident and Tia is
part-year OR resident. The filed MFS on their Federal returns and both itemized.
The are allowed to use what forms for OR?
a. Tia Form 40N, Colin Form 40
b. Tia Form 40P, Colin Form 40
c. They can both use Form 40 but they have to file separately. ANSWERS b
4. (Oregon) (T/F) ANSWERS For Oregon, you can electronically file
separately from elec- tronically filing Federal. ANSWERS F
5. (Oregon) (T/F) ANSWERS Stan and Kyle are married and have homes in
OR and WA. The live at their OR home from April to September. They are
retired. They have always considered WA to be their home. They are OR
residents and must file a return. ANSWERS F
Less than 200 days plus definition of domicile.
6. (Oregon) Which of the following types of "Oregon source" income is taxable
to a nonresident?
a. Royalties received from OR properties.
b. Income from an OR farm.
c. Oregon unemployment.
d. All of the above. ANSWERS d
, Tax Prep Study (Part 9: Oregon) Questions and Correct Answer
7. (Oregon) (T/F) ANSWERS On your federal Schedule B, it shows that you
received non- taxable interest from ANSWERS the City of San Francisco, CA;
the City of Seattle, WA; and the City of Medford, OR. You have no additions on
your Oregon return. ANSWERS F
Nontaxable interest is usually from muni bonds. Interest from out-of-state munis is taxable by Oregon and is entered
on Form 40 line 9.
8. (Oregon) (T/F) Federal does not tax interest on obligations from states or their
political subdivisions. If you have interest from another state, you will have an
addition on the Oregon return. ANSWERS T
Example ANSWERS Out-of-state municipal bonds.
9. (Oregon) Jared is a nonresident of Oregon and is stationed in Oregon on
active duty. He also has a part-time job. Jared has been in OR for 7 months.
What form should he use?
a. 40.
b. 40P.
c. 40N. ANSWERS c
10. (Oregon) (T/F) John, a single taxpayer, will file a return with itemized deduc-
tions and $500,000 of AGI. His itemized deductions are limited for federal and
therefore he will need to do a worksheet for Oregon to determine the amount
of deductions to take on his Oregon return. ANSWERS T
2013 Pub. 17.5 page 84. The worksheet is needed to compute the amount of tax paid to OR that is entered on Form
40 line 24.
11. (Oregon) (T/F) If you use the standard deduction on your federal return, you
must use the standard deduction on your Oregon return. ANSWERS F
12. (Oregon) (T/F) The Artist Charitable Contribution is a subtraction on the
Oregon return and the taxpayer must itemize on the Oregon return to receive
it. ANSWERS T
This subtraction allows artists to contribute their own work to a charitable organization. An appraisal report showing
the FMV is required. The subtraction is the FMV (possibly limited by the 30/50% limit) minus the basis (which is the
, Tax Prep Study (Part 9: Oregon) Questions and Correct Answer
amount allowed on the Federal return). So you itemize on Federal to deduct the basis and you take the subtraction on
OR to get the rest.
13. (Oregon) (T/F) Sara and Como are married filing joint. Sara is age 64 and
Como is age 45 at year-end. They will itemize. Schedule A line 1 is $9000 and
line 3 is $2100. Their special Oregon medical deduction is $2100.
ANSWERS F
For 2013, it is never more than $1800 per person over age 62.
14. (Oregon) T/F ANSWERS Itemized deductions are not limited on Oregon
returns. ANSWERS F
If they are limited on the federal return, they are limited on the Oregon return. This ettects the amount of Oregon state
income tax that is subtracted from the federal total; a calculation is required to determine the correct amount.
15. (Oregon) (T/F) Bill, age 62, has medical deductions on his federal return of
$592 and an AGI of $32,105. His Oregon medical deduction will be the same.
ANSWERS F
32105(0.10) = $3211 so his qualified medical expenses were 3211+592 = $3803. Therefore, his OR special medical
deduction will be $1800.
16. (Oregon) Gambling winnings claimed on the federal return were $1000. This
includes 2 Oregon lottery tickets that won $300 each. Gambling losses of $750
were claimed on Schedule A of which $150 was OR lottery expense. How much
is the OR subtraction?
a. $0.
b. $150.
c. $600.
d. $750. ANSWERS c
Oregon does not tax OR lottery winnings of $600 or less (from a single ticket).
So if this income appears on the federal return, it is a subtraction on the OR return.
Note that there is also an Oregon *addition* in this case because the Schedule A deduction is reduced (750-400 = $350
, Tax Prep Study (Part 9: Oregon) Questions and Correct Answer
addition).
17. (Oregon) Gambling winnings claimed on the federal return were $1000. This
includes 2 Oregon lottery tickets that won $300 each. Gambling losses of $750
1. (Oregon) T/F: On your federal Schedule B, it shows that you received nontax-
able interest from: the City of San Francisco, CA; the City of Seattle, WA; and the
City of Medford, OR. You have no additions on your Oregon return. ANSWER
F
Nontaxable interest is from muni bonds. Interest from out-of-state munis is taxable by Oregon and is entered on Form
40 line 9.
2. (Oregon) (T/F) When electronically filing your Oregon return, you do not need
to file Form EF if you are using a Federal PIN. ANSWERS T
Form EF is only required when doing a "state-only" electronic filing and the associated federal return does not match
the federal return already filed.
3. (Oregon) Tia and Colin are married. Colin is a full-year OR resident and Tia is
part-year OR resident. The filed MFS on their Federal returns and both itemized.
The are allowed to use what forms for OR?
a. Tia Form 40N, Colin Form 40
b. Tia Form 40P, Colin Form 40
c. They can both use Form 40 but they have to file separately. ANSWERS b
4. (Oregon) (T/F) ANSWERS For Oregon, you can electronically file
separately from elec- tronically filing Federal. ANSWERS F
5. (Oregon) (T/F) ANSWERS Stan and Kyle are married and have homes in
OR and WA. The live at their OR home from April to September. They are
retired. They have always considered WA to be their home. They are OR
residents and must file a return. ANSWERS F
Less than 200 days plus definition of domicile.
6. (Oregon) Which of the following types of "Oregon source" income is taxable
to a nonresident?
a. Royalties received from OR properties.
b. Income from an OR farm.
c. Oregon unemployment.
d. All of the above. ANSWERS d
, Tax Prep Study (Part 9: Oregon) Questions and Correct Answer
7. (Oregon) (T/F) ANSWERS On your federal Schedule B, it shows that you
received non- taxable interest from ANSWERS the City of San Francisco, CA;
the City of Seattle, WA; and the City of Medford, OR. You have no additions on
your Oregon return. ANSWERS F
Nontaxable interest is usually from muni bonds. Interest from out-of-state munis is taxable by Oregon and is entered
on Form 40 line 9.
8. (Oregon) (T/F) Federal does not tax interest on obligations from states or their
political subdivisions. If you have interest from another state, you will have an
addition on the Oregon return. ANSWERS T
Example ANSWERS Out-of-state municipal bonds.
9. (Oregon) Jared is a nonresident of Oregon and is stationed in Oregon on
active duty. He also has a part-time job. Jared has been in OR for 7 months.
What form should he use?
a. 40.
b. 40P.
c. 40N. ANSWERS c
10. (Oregon) (T/F) John, a single taxpayer, will file a return with itemized deduc-
tions and $500,000 of AGI. His itemized deductions are limited for federal and
therefore he will need to do a worksheet for Oregon to determine the amount
of deductions to take on his Oregon return. ANSWERS T
2013 Pub. 17.5 page 84. The worksheet is needed to compute the amount of tax paid to OR that is entered on Form
40 line 24.
11. (Oregon) (T/F) If you use the standard deduction on your federal return, you
must use the standard deduction on your Oregon return. ANSWERS F
12. (Oregon) (T/F) The Artist Charitable Contribution is a subtraction on the
Oregon return and the taxpayer must itemize on the Oregon return to receive
it. ANSWERS T
This subtraction allows artists to contribute their own work to a charitable organization. An appraisal report showing
the FMV is required. The subtraction is the FMV (possibly limited by the 30/50% limit) minus the basis (which is the
, Tax Prep Study (Part 9: Oregon) Questions and Correct Answer
amount allowed on the Federal return). So you itemize on Federal to deduct the basis and you take the subtraction on
OR to get the rest.
13. (Oregon) (T/F) Sara and Como are married filing joint. Sara is age 64 and
Como is age 45 at year-end. They will itemize. Schedule A line 1 is $9000 and
line 3 is $2100. Their special Oregon medical deduction is $2100.
ANSWERS F
For 2013, it is never more than $1800 per person over age 62.
14. (Oregon) T/F ANSWERS Itemized deductions are not limited on Oregon
returns. ANSWERS F
If they are limited on the federal return, they are limited on the Oregon return. This ettects the amount of Oregon state
income tax that is subtracted from the federal total; a calculation is required to determine the correct amount.
15. (Oregon) (T/F) Bill, age 62, has medical deductions on his federal return of
$592 and an AGI of $32,105. His Oregon medical deduction will be the same.
ANSWERS F
32105(0.10) = $3211 so his qualified medical expenses were 3211+592 = $3803. Therefore, his OR special medical
deduction will be $1800.
16. (Oregon) Gambling winnings claimed on the federal return were $1000. This
includes 2 Oregon lottery tickets that won $300 each. Gambling losses of $750
were claimed on Schedule A of which $150 was OR lottery expense. How much
is the OR subtraction?
a. $0.
b. $150.
c. $600.
d. $750. ANSWERS c
Oregon does not tax OR lottery winnings of $600 or less (from a single ticket).
So if this income appears on the federal return, it is a subtraction on the OR return.
Note that there is also an Oregon *addition* in this case because the Schedule A deduction is reduced (750-400 = $350
, Tax Prep Study (Part 9: Oregon) Questions and Correct Answer
addition).
17. (Oregon) Gambling winnings claimed on the federal return were $1000. This
includes 2 Oregon lottery tickets that won $300 each. Gambling losses of $750
