Final answer:
The statement is False as Oregon taxpayers have the option to itemize deductions on their state return even if they have taken the standard deduction on their federal return.
Step-by-step explanation:
The statement that if you use the standard deduction on your federal return, you must use the standard deduction on your Oregon return is False. Taxpayers have the option to itemize deductions on their Oregon return even if they have taken the standard deduction on their federal return. This flexibility allows individual taxpayers to choose the method that provides the greatest tax benefit for their specific situation.
The standard deduction is an amount by which taxpayers are allowed to reduce their adjusted gross income (AGI) if they do not itemize deductions. When using the standard deduction on a federal return, you will generally lower your taxable income and thus potentially reduce the taxes owed. However, states can have different rules for deductions on their state tax returns.
In the case of Oregon return, while the federal decision may influence a taxpayer's choice, it does not compel the taxpayer to use the standard deduction on their state return. Oregon law allows the taxpayer to itemize deductions on their state return irrespective of their choice on the federal return.