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Oregon income tax question regarding refunds ?

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Q. Oregon income tax question regarding refunds ? This is an Oregon state income tax question: In Oregon, for tax puposes, ones income is computed by using the amount from the Federal 1040, line 33. To this certain amounts are added or deducted according to Oregon's various tax rules. One problem with this is that the federal amount includes ones state income tax refund (for those who itemize). So, Oregon essentially imposes a tax on its own refund. Is there a way to deduct this from one's taxes? I have searched the Oregon tax booklet without finding a clear answer.

A. -On line 15 of Form 40 Oregon Income Tax 2000 you list your state income tax refund included the income listed on line 8 on the same form. If you follow the instructions clearly listed on the form you will not pay Oregon Income tax on your st

 


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