Final answer:
Jamie should treat $1550 of the $1800 federal tax refund as an addition to her 2013 Oregon income because the initial state subtraction was $250 less than her federal tax liability.
Step-by-step explanation:
The situation presented involves the calculation of what portion of a federal tax refund needs to be reported as income on an Oregon state tax return, stemming from an amended federal return for a previous year.
Jamie's federal tax liability was $6350 in 2012, but his subtraction on the Oregon return was limited to $6100. He received a refund of $1800 in 2013 from the amended federal return. Since the state subtraction was less than the federal tax liability, the addition to Oregon income should be the difference between the tax liability and the amount actually subtracted on the state return, which is $6350 - $6100 = $250. Then, subtract this from the federal refund received, which is $1800 - $250 = $1550. This is the amount that should be treated as an addition to the 2013 Oregon return. Hence, the correct answer is c. $1550.