Final answer:
The statement is False; the early distribution penalty for pensions and the homebuyer credit recapture are not subtracted from the federal tax liability for Oregon. These amounts must be added back when computing state tax liability for Oregon residents.
Step-by-step explanation:
When it comes to Oregon's treatment of federal tax topics, the statement is False. The early distribution penalty for pensions and the homebuyer credit recapture are not included in the federal tax liability subtraction for Oregon. Taxpayers in Oregon must add these amounts back in when calculating their state tax liability. The early distribution penalty for pensions is a consequence imposed at the federal level for withdrawing retirement funds before a certain age, typically 59 and a half. Similarly, the homebuyer credit recapture is a provision where the federal government requires the repayment of a credit if certain conditions are not met, such as maintaining a principal residence for a requisite period following the purchase.
Oregonians must adhere to federal regulations related to these issues and cannot subtract these specific penalties and recapture amounts from their Oregon state taxes.