2021 Oregon Revised Statutes
Chapter 316 - Personal Income Tax
Section 316.157 - Credit for retirement income.


(2) For purposes of this section:
(a) "Eligible individual" means any individual who is receiving pension income and who has attained 62 years of age before the close of the taxable year.
(b) "Household income" means the aggregate income of the taxpayer and the spouse of the taxpayer who reside in the household, that was received during the taxable year for which a credit is claimed, except that "household income" does not include Social Security benefits received by the taxpayer or the spouse of the taxpayer.
(c) "Income" means "adjusted gross income" as defined in the federal Internal Revenue Code, as amended and in effect on April 1, 2021, even when the amendments take effect or become operative after that date, relating to the measurement of taxable income of individuals, estates and trusts, with the following modifications:
(A) There shall be added to adjusted gross income the following items of otherwise exempt income:
(i) The gross amount of any otherwise exempt pension less return of investment, if any.
(ii) Child support received by the taxpayer.
(iii) Inheritances.
(iv) Gifts and grants, the sum of which are in excess of $500 per year.
(v) Amounts received by a taxpayer or spouse of a taxpayer for support from a parent who is not a member of the taxpayer’s household.
(vi) Life insurance proceeds.
(vii) Accident and health insurance proceeds, except reimbursement of incurred medical expenses.
(viii) Personal injury damages.
(ix) Sick pay that is not included in federal adjusted gross income.
(x) Strike benefits excluded from federal gross income.
(xi) Worker’s compensation, except for reimbursement of medical expense.
(xii) Military pay and benefits.
(xiii) Veteran’s benefits.
(xiv) Payments received under the federal Social Security Act that are excluded from federal gross income.
(xv) Welfare payments, except as follows:
(I) Payments for medical care, drugs and medical supplies, if the payments are not made directly to the welfare recipient;
(II) In-home services authorized and approved by the Department of Human Services; and
(III) Direct or indirect reimbursement of expenses paid or incurred for participation in work or training programs.
(xvi) Nontaxable dividends.
(xvii) Nontaxable interest not included in federal adjusted gross income.
(xviii) Rental allowance paid to a minister that is excluded from federal gross income.
(xix) Income from sources without the United States that is excluded from federal gross income.
(B) Adjusted gross income shall be increased due to the disallowance of the following deductions:
(i) The amount of the net loss, in excess of $1,000, from all dispositions of tangible or intangible properties.
(ii) The amount of the net loss, in excess of $1,000, from the operation of a farm or farms.
(iii) The amount of the net loss, in excess of $1,000, from all operations of a trade or business, profession or other activity entered into for the production or collection of income.
(iv) The amount of the net loss, in excess of $1,000, from tangible or intangible property held for the production of rents, royalties or other income.
(v) The amount of any net operating loss carryovers or carrybacks included in federal adjusted gross income.
(vi) The amount, in excess of $5,000, of the combined deductions or other allowances for depreciation, amortization or depletion.
(vii) The amount added or subtracted, as required within the context of this section, for adjustments made under ORS 316.680 (2)(d) and 316.707 to 316.737.
(C) "Income" does not include the following:
(i) Any governmental grant that must be used by the taxpayer for rehabilitation of the homestead of the taxpayer.
(ii) Any refund of Oregon personal income taxes that were imposed under this chapter.
(d) "Net pension income" means:
(A) For eligible individuals filing a joint return, the lesser of the pension income of the eligible individuals received during the taxable year or the excess, if any, of $15,000 over the sum of the following amounts:
(i) Any Social Security benefits received by the eligible individual, or by the spouse of the individual, during the taxable year; and
(ii) The excess, if any, of household income over $30,000.
(B) For an eligible individual filing a return other than a joint return, the lesser of the pension income of the eligible individual received during the taxable year or the excess, if any, of $7,500 over the sum of the following amounts:
(i) Any Social Security benefits received by the eligible individual during the taxable year; and
(ii) The excess, if any, of household income over $15,000.
(e) "Pension income" means income included in Oregon taxable income from:
(A) Distributions from or pursuant to an employee pension benefit plan, as defined in section 3(2) of the Employee Retirement Income Security Act of 1974, which satisfies the requirements of section 401 of the Internal Revenue Code;
(B) Distributions from or pursuant to a public retirement system of this state or a political subdivision of this state, or a public retirement system created by an Act of this state or a political subdivision of this state, or the public retirement system of any other state or local government;
(C) Distributions from or pursuant to a federal retirement system created by the federal government for any officer or employee of the United States, including any person retired from service in the United States Civil Service, the Armed Forces of the United States or any agency or subdivision thereof;
(D) Distributions or withdrawals from or pursuant to an eligible deferred compensation plan which satisfies the requirements of section 457 of the Internal Revenue Code;
(E) Distributions or withdrawals from or pursuant to an individual retirement account, annuity or trust or simplified employee pension which satisfies the requirements of section 408 of the Internal Revenue Code; and
(F) Distributions or withdrawals from or pursuant to an employee annuity, including custodial accounts treated as annuities, subject to section 403 (a) or (b) of the Internal Revenue Code.
(f) "Social Security benefits" means Social Security benefits, as defined in section 86 of the Internal Revenue Code (Title II Social Security or tier 1 railroad retirement benefits).
(3) If a change in the taxable year of the eligible individual occurs as described in ORS 314.085, or if the Department of Revenue terminates the tax year of the eligible individual under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.
(4) If a change in the status of the eligible individual from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with subsection (1) of this section. [1991 c.823 §5; 1997 c.839 §13; 1999 c.90 §12; 2001 c.660 §39; 2015 c.348 §19; 2015 c.480 §9; 2016 c.33 §22; 2017 c.315 §24; 2017 c.527 §22; 2018 c.101 §22; 2019 c.319 §23; 2021 c.456 §23]
Note: Section 36, chapter 913, Oregon Laws 2009, provides:
Sec. 36. A credit may not be claimed under ORS 316.157 for tax years beginning on or after January 1, 2026. [2009 c.913 §36; 2013 c.750 §9; 2019 c.579 §27]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 08 - Revenue and Taxation

Chapter 316 - Personal Income Tax

Section 316.003 - Goals.

Section 316.007 - Policy.

Section 316.012 - Terms have same meaning as in federal laws; federal law references.

Section 316.022 - General definitions.

Section 316.027 - "Resident" defined.

Section 316.028 - Determination of net operating loss, carryback and carryforward.

Section 316.032 - Department to administer law; policy as to federal conflicts and technical corrections.

Section 316.037 - Imposition and rate of tax.

Section 316.043 - Tax rates allowed for certain qualifying income; conditions; election.

Section 316.044 - Estimates by Legislative Revenue Officer; reports; adjustment of rates.

Section 316.045 - Tax rate imposed on certain long-term capital gain from farming; requirements.

Section 316.056 - Interest or dividends on obligations of state or public bodies subtracted from federal taxable income.

Section 316.078 - Tax credit for dependent care expenses necessary for employment.

Section 316.079 - Credit for certain disabilities.

Section 316.082 - Credit for taxes paid another state; rules.

Section 316.085 - Personal exemption credit.

Section 316.087 - Credit for the elderly or permanently and totally disabled.

Section 316.090 - Credit for manufactured dwelling park closure.

Section 316.099 - Credit for early intervention services for child with disability; income limitation; rules of State Board of Education.

Section 316.102 - Credit for political contributions.

Section 316.109 - Credit for tax by another jurisdiction on sale of residential property; rules.

Section 316.116 - Credit for alternative energy device; rules.

Section 316.117 - Proration between Oregon income and other income for nonresidents, part-year residents and trusts.

Section 316.118 - Pro rata share of S corporation income of nonresident shareholder.

Section 316.119 - Proration of part-year resident’s income between Oregon income and other income; alternative proration for pass-through entity items.

Section 316.122 - Separate or joint determination of income for spouses in a marriage.

Section 316.124 - Determination of adjusted gross income of nonresident partner.

Section 316.127 - Income of nonresident from Oregon sources.

Section 316.130 - Determination of taxable income of full-year nonresident.

Section 316.131 - Credit allowed to nonresident for taxes paid to state of residence; exception.

Section 316.147 - Definitions for ORS 316.147 to 316.149.

Section 316.148 - Credit for expenses in lieu of nursing home care; limitation.

Section 316.157 - Credit for retirement income.

Section 316.158 - Effect upon ORS 316.157 of determination of invalidity; severability.

Section 316.159 - Subtraction for certain retirement distributions contributed to retirement plan during period of nonresidency; substantiation rules.

Section 316.162 - Definitions for ORS 316.162 to 316.221.

Section 316.164 - When surety bond or letter of credit required of employer; enforcement.

Section 316.167 - Withholding of tax required; elective provisions for agricultural employees; liability of supplier of funds to employer for taxes.

Section 316.168 - Employer required to file combined quarterly tax report.

Section 316.169 - Circumstances in which person other than employer required to withhold tax.

Section 316.172 - Department to provide deduction and withholding information and determine amount, form and manner of withholding by employers.

Section 316.177 - Reliance on withholding statement or exemption certificate; penalty for statement without reasonable basis.

Section 316.182 - Withholding statement of exemption certificate; default withholding rate.

Section 316.189 - Withholding of state income taxes from certain periodic payments.

Section 316.191 - Withholding taxes at time and in manner other than required by federal law; rules.

Section 316.193 - Withholding of state income taxes from federal retired pay for members of uniformed services.

Section 316.194 - Withholding from lottery prize payments; rules.

Section 316.196 - Withholding of state income taxes from federal retirement pay for civil service annuitant.

Section 316.197 - Payment to department by employer; interest on delinquent payments.

Section 316.198 - Payment by electronic funds transfer; phase-in; rules.

Section 316.202 - Reports by employer; waiver; indication of qualified retirement plan offer; penalty for failure to substantiate report; rules.

Section 316.207 - Liability for tax; warrant for collection; conference; appeal.

Section 316.209 - Applicability of ORS 316.162 to 316.221 when services performed by qualified real estate broker or direct seller.

Section 316.213 - Definitions for ORS 316.213 to 316.219.

Section 316.214 - Withholding requirements for members of professional athletic teams.

Section 316.218 - Annual report of compensation paid to professional athletic team members.

Section 316.219 - Rules.

Section 316.220 - Alternative withholding requirements for qualifying film production compensation; rules; refund prohibition.

Section 316.221 - Disposition of withheld amounts.

Section 316.223 - Alternate methods of filing, reporting and calculating liability for nonresident employer and employee in state temporarily; rules.

Section 316.277 - Associations taxable as corporations exempt from chapter.

Section 316.282 - Definitions related to trusts and estates; rules.

Section 316.287 - "Fiduciary adjustment" defined; shares proportioned; rules.

Section 316.292 - Credit for taxes paid another state.

Section 316.298 - Accumulation distribution credit.

Section 316.307 - Income of nonresident estate or trust.

Section 316.312 - Determination of Oregon share of income.

Section 316.362 - Persons required to make returns.

Section 316.363 - Returns; instructions.

Section 316.364 - Flesch Reading Ease Score form instructions.

Section 316.367 - Joint return by spouses in a marriage.

Section 316.369 - Circumstances where one spouse relieved of joint return liability; rules.

Section 316.372 - Minor to file return; unpaid tax assessable against parent; when parent may file for minor.

Section 316.382 - Returns by fiduciaries.

Section 316.387 - Election for final tax determination by personal representative; period for assessment of deficiency; discharge of personal representative from personal liability for tax.

Section 316.417 - Date return considered made or advance payment made.

Section 316.472 - Tax treatment of common trust fund; information return required.

Section 316.502 - Distribution of revenue to General Fund; working balance; refundable credit payments.

Section 316.563 - When declaration of estimated tax required; exception; effect of short tax year; content; amendment; rules.

Section 316.567 - Joint declaration of spouses in a marriage; liability; effect on nonjoint returns; rules.

Section 316.569 - When declaration required of nonresident.

Section 316.573 - When individual not required to file declaration.

Section 316.577 - Date of filing declaration.

Section 316.579 - Amount of estimated tax to be paid with declaration; installment schedule; prepayment of installment.

Section 316.583 - Effect of payment of estimated tax or installment; credit for overpayment of prior year taxes; rules.

Section 316.587 - Effect of underpayment of estimated tax; computation of underpayment; interest; when not imposed.

Section 316.588 - When interest on underpayment not imposed.

Section 316.589 - Application to short tax years and tax years beginning on other than January 1.

Section 316.680 - Modification of taxable income.

Section 316.683 - State exempt-interest dividends; rules.

Section 316.685 - Federal income tax deductions; accrual method of accounting required; adjustment for federal earned income credit.

Section 316.690 - Foreign income taxes.

Section 316.693 - Subtraction for medical expenses of elderly individuals.

Section 316.695 - Additional modifications of taxable income; rules.

Section 316.699 - Subtraction for contributions to savings network account for higher education or ABLE account; limitations; carryforward.

Section 316.707 - Computation of depreciation of property under federal law; applicability.

Section 316.716 - Differences in basis on federal and state return; application of federal credit.

Section 316.738 - Modification of taxable income when deferred gain is recognized as result of out-of-state disposition of property.

Section 316.739 - Deferral of deduction for certain amounts deductible under federal law.

Section 316.747 - Contribution to charitable organization subject to disqualification order.

Section 316.749 - Dividend from domestic international sales corporation.

Section 316.752 - Definitions for ORS 316.752 to 316.771.

Section 316.758 - Additional personal exemption credit for persons with severe disabilities; income limitation.

Section 316.765 - Additional personal exemption credit for spouse of person with severe disability; conditions.

Section 316.777 - Income derived from sources within federally recognized Indian country exempt from tax.

Section 316.778 - Small city business development exemption; rules.

Section 316.792 - Military pay.

Section 316.796 - Definitions.

Section 316.797 - First-time home buyer savings account; restrictions.

Section 316.798 - Subtraction for contributions; exemption for earnings; limitations.

Section 316.800 - Limits phased out based on income applicable to subtraction or exemption.

Section 316.801 - Addition for certain amounts withdrawn; penalty; exceptions.

Section 316.803 - Obligations of financial institution; provision of certificates to account holders.

Section 316.806 - Definitions for ORS 316.806 to 316.818.

Section 316.821 - Federal election to deduct sales taxes; addition for state purposes.

Section 316.824 - Definitions for ORS 316.824 and 316.832.

Section 316.832 - Travel expenses for loggers.

Section 316.838 - Art object donation.

Section 316.844 - Special computation of gain or loss where farm use value used.

Section 316.846 - Scholarship awards used for housing expenses.

Section 316.847 - National service educational award.

Section 316.848 - Individual development accounts.

Section 316.852 - Qualified donations and sales to educational institutions.

Section 316.856 - Severance pay; rules.

Section 316.992 - Penalty for filing incorrect return that is based on frivolous position or is intended to delay or impede administration; appeal.