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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. True or False?

User Diode Dan
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Final answer:

The assumption that Bill's Oregon medical deduction will be the same as his federal return is likely false, as state tax laws can differ from federal provisions. Also, medical deductions on a federal return are subject to a 7.5% AGI threshold, which Bill's expenses do not meet.

Step-by-step explanation:

The question regarding Bill's Oregon medical deduction is related to tax deductions and adjusted gross income (AGI). It's necessary to understand that while federal tax laws might set a precedent, state tax laws can differ significantly. Therefore, without specific knowledge of Oregon's tax laws and whether they provide for the same deduction criteria as the federal system, it cannot be assumed that Bill's medical deduction for Oregon would be the same as his federal deduction. It's important to reference the relevant state law or guidelines to determine the correct state deduction.

Furthermore, medical deductions on a federal return are subject to certain thresholds. Typically, only the amount that exceeds 7.5% of the taxpayer's adjusted gross income can be included as an itemized deduction. As Bill's AGI is $32,105, this threshold would be $2,407.875. Since Bill's medical expenses are only $592, it is unlikely that he would be able to claim them as a deduction unless Oregon has different rules not tied to the federal AGI thresholds.

Therefore, the statement that Bill's Oregon medical deduction will be the same as his federal deduction is likely False. To be certain, one would need to check the details of Oregon's tax code.

User Awmross
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