Oregon adjusted my taxes for 2017, indicating that the sum of the subtraction for federal foreign tax (code 311) and the 2017 federal tax liability (2017 OR-40 line 10) cannot be greater than $6,550. In my case, OR-40 line 10 is $6,500, meaning no subtraction for code 311 is allowed. This is the 2nd year that Oregon has made this adjustment, and required payment of the extra taxes and interest. The relevant docs and quotes are below. Could someone feed this back to the designers? http://www.oregon.gov/DOR/forms/FormsPubs/publication-or-40-fy_101-043_2017.pdf 2017 Oregon Income Tax Full-year Resident Publication OR-40-FY Subtractions Line 10 "2017 federal tax liability subtraction" Did you pay taxes to a foreign country? If so, you may be able to claim a subtraction for the additional tax. See Publication OR-17 for more information before making changes to this subtraction. http://www.oregon.gov/DOR/forms/FormsPubs/publication-or-17_101-431_2017.pdf Publication OR-17 Individual Income Tax Guide 150-101-431 (Rev. 12-17) Federal tax worksheet, part C "Foreign tax subtraction" If your total federal tax subtraction (Part A, line 11 plus Part B, line 5) is $6,550 ($3,275 if your filing status is married filing separately) or more, STOP--you can’t subtract your foreign tax (ORS 316.690).
... View more