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150-101-007-1 (Rev. 10-27-21)
Schedule OR-A Instructions
remaining $1,750 in April 2022 when she files her 2021
returns. Peggy’s deduction for tax paid to Iowa for 2021 is
the $1,250 in withholding, and if she itemizes in 2022, her
deduction will be the remaining $1,750. For 2021, her Oregon
itemized deduction for taxes paid to Iowa is reduced by
$1,250, the tax she’s deducting on which her credit is based.
If she itemizes in 2022, she’ll reduce her deduction for taxes
paid to Iowa by $1,750, the remaining portion of the tax on
which her 2021 credit is based.
See “Income taxes paid to another state” in Publication
OR-17 for details about the credit.
Sales tax. Oregon doesn’t allow a deduction for sales tax
paid. Important: If you made the election on your federal
Schedule A to deduct sales tax paid instead of income tax
paid, you can’t deduct income tax paid on your Schedule
OR-A. (ORS 316.821)
Lines 5 through 11
Line 5. State and local income taxes. Enter the total of the
state and local income taxes you paid to a local govern-
ment or to a state other than Oregon, reduced as explained
above for any credits you’re claiming for income taxes paid
to another state.
Note: If you deducted sales tax paid instead of income
tax paid on your federal Schedule A, you must enter 0 on
line 5.
Line 6. Real estate taxes. Enter the state or local taxes you
paid on real estate you own that wasn’t used for business,
but only if the taxes are assessed uniformly at a like rate
on all real property throughout the community, and the
proceeds are used for general community or governmental
purposes. See IRS Publication 530, Tax Information for Home-
owners, for more information.
Don’t include the following:
• Taxes on real property located outside the United States
or its possessions.
• Itemized charges for services to specific property or per-
sons (for example, a flat fee charged by the county for
mowing a lawn that has grown beyond the permitted
height).
• Charges for improvements that tend to increase the
value of your property, such as sidewalk assessments.
Line 7. Personal property taxes. Enter the state or local per-
sonal property taxes you paid that were:
• Based only on the property’s value (ad valorem) and
• Imposed on a yearly basis.
Line 8. Reserved.
Line 9. Total income and property taxes. Enter the total
of lines 5, 6, and 7. Don’t enter more than $10,000 ($5,000 if
married filing separately).
Line 10. Other taxes. List the type and amount of other
deductible taxes that aren’t already included on lines 5, 6,
or 7.
Interest you paid
You may deduct the following interest on Schedule OR-A:
• Home mortgage interest. Interest paid on a home
mortgage that is secured by your main home or sec-
ond home, including first and second mortgages and
refinanced mortgages, including mortgage points.
Don’t include interest paid on home equity loans. See
IRS Publication 936, Home Mortgage Interest Deduc-
tion, for debt and income limits and other information.
Note: If you had to reduce your deduction on your fed-
eral return because you claimed the mortgage inter-
est credit, you may subtract the reduction amount on
Schedule OR-ASC or OR-ASC-NP. See “Federal tax
credits” in Publication OR-17 for more information.
• Mortgage insurance premiums. Mortgage insurance
premiums are deductible as a form of interest for tax
year 2021. You may deduct premiums paid or accrued for
mortgage insurance on your main home or second home
if the amount on Form OR-40, line 7, or Form OR-40-N
or OR-40-P, line 29F isn’t more than $109,000 ($54,500 if
mar ried filing separately). If the amount on Form OR-40,
line 7, or Form OR-40-N or OR-40-P, line 29F is more than
$100,000 ($50,000 if married filing separately), use the
“Mortgage Insurance Premiums Deduction Work sheet”
in the instructions for federal Schedule A to calculate
your mortgage insurance premium deduction. See IRS
Publication 936 for limits and other details.
• Investment interest. This is interest paid on money
you borrowed to buy property held for investment.
Your investment interest deduction is generally limited
to the income, after other expenses, from the invest-
ments. Investment interest expense that exceeds the
investment income may be carried forward to next year.
Note: If the interest is allocable to income that is exempt
from Oregon tax, you may have to modify the income
on Schedule OR-ASC or OR-ASC-NP. Unless an excep-
tion applies, if you are deducting investment interest,
you must complete federal Form 4952, Investment Interest
Expense Deduction. Keep a copy of this form with your
tax records; don’t include it with your Oregon return. For
more information, limitations, and additional require-
ments, see IRS Publication 550, Investment Income and
Expenses, and the instructions for Form 4952. For more
information about income with related interest expense,
see Publication OR-17.
Lines 12 through 17
Line 12. Mortgage interest and points reported on Form
1098. Enter the home mortgage interest and points reported
to you on federal Form 1098, Mortgage Interest Statement.
Line 13. Mortgage interest not reported on Form 1098.
Enter the home mortgage interest you paid to a recipient
who didn’t provide you with a Form 1098. If the recipient
was the person from whom you bought the home, enter the
person’s name, address, and Social Security number (SSN)
(if an individual) or employer identification number (EIN)
on the dotted line next to line 13.