Question

Which of the following would *not* be an addition to the Oregon return?

a. Oregon depreciation is more than federal depreciation.
b. Interest on bonds from another state.
c. Long term care insurance premiums if taking them as a credit instead.
d. Gambling losses claimed as an itemized deduction if subtracting lottery winnings.

Answer 1

The item that would not be an addition to the Oregon return is the long term care insurance premiums if taking them as a credit instead (C). Tax credits reduce the tax owed, not the taxable income. Other listed items are generally added back when calculating state taxes.

Step-by-step explanation:

The student's question asks which item would not be an addition to the Oregon return. Among the options provided, the correct answer is letter C: Long term care insurance premiums if taking them as a credit instead. This is because tax credits are subtracted directly from the tax owed rather than being an addition to income. The additional items are adjustments made to the federal income before calculating the state tax owed. Oregon depreciation that is more than federal depreciation (A) would be added back to the Oregon return. The interest on bonds from another state (B) is typically added to the state return as it is often tax-exempt on the federal return but not on the state return. Lastly, gambling losses claimed as an itemized deduction (D) are added back if they are used to offset gambling winnings because Oregon does not allow a deduction for gambling losses.