Final answer:
The assertion that a taxpayer with a high AGI and itemized deductions needs to use a worksheet for Oregon state taxes to determine allowable deductions is indeed likely to be true. State-specific rules can vary significantly from federal tax guidelines.
Step-by-step explanation:
The statement that John, a single taxpayer with $500,000 of AGI and itemized deductions, needs to complete a worksheet for Oregon to determine the amount of deductions to take on his Oregon return can be True. For federal tax purposes, high-income taxpayers may experience limitation on the itemized deductions they can claim. The federal tax code outlines rules for these limitations, often referred to as the Pease limitations. Taxpayers like John, with an AGI above certain thresholds, would have to reduce their otherwise allowable itemized deductions by a certain percentage. However, each state may follow different rules regarding the deductions. Oregon may require a separate worksheet to correctly calculate the state-specific allowable itemized deductions.
When it comes to a taxpayer's taxable income, it is calculated as adjusted gross income minus deductions and exemptions. Although the federal rules provide a general framework, state tax systems can be nuanced and distinct. It’s crucial for taxpayers, especially those with higher incomes, who may be more likely to itemize their deductions, to be aware of state-specific tax filing requirements.