How to Complete Oregon Schedule OR-A: Itemized Deductions on Form OR-40

Oregon Schedule OR-A is the form you attach to Form OR-40 to claim itemized deductions in place of Oregon’s standard deduction. It has six sections across 23 lines, and the total on line 23 transfers directly to Form OR-40, line 16. Because Oregon’s standard deduction is small, many people who take the federal standard deduction still come out ahead itemizing on their state return.

Should You Itemize on Your Oregon Return?

Your Oregon itemization choice is independent of your federal choice. Oregon Administrative Rule 150-316-0555 lets you claim the greater of the Oregon standard deduction or your net itemized deductions regardless of what you did federally.¹ For tax year 2025, Oregon’s standard deductions are:

Single: $2,835
Married filing jointly: $5,670
Head of household: $4,560
Qualifying surviving spouse: $5,670
Married filing separately: $2,835 if your spouse also takes the standard deduction, or $0 if your spouse itemizes

If your mortgage interest, property tax, charitable giving, and medical costs together clear those numbers, Schedule OR-A will reduce your Oregon taxable income more than the standard deduction would.² Watch the married-filing-separately rule: once one spouse itemizes, the other spouse’s standard deduction drops to zero, so both effectively have to itemize.

Medical and Dental Expenses (Lines 1–4)

Put total unreimbursed medical expenses on line 1. On line 2, enter 7.5 percent of your federal adjusted gross income (Form OR-40, line 7). Only the amount above that floor is deductible, and the net goes on line 4.³ Qualifying costs include doctor and dentist visits, prescriptions, health insurance premiums paid out of pocket, and long-term care not covered by insurance.

If you or your spouse was at least 66 by the end of the tax year, Oregon also offers a separate medical subtraction under ORS 316.693 that bypasses the 7.5 percent floor.⁴ That subtraction is claimed on Schedule OR-ASC rather than here, but it draws on the same receipts, so keep them organized.

Taxes You Paid (Lines 5–11)

This is where Oregon departs most sharply from federal Schedule A. You cannot deduct Oregon income tax on your Oregon return. The Schedule OR-A instructions list it as a non-deductible tax.³ On line 5, enter only state and local income taxes paid to a state other than Oregon, or to a local government. If you deducted sales tax rather than income tax on your federal Schedule A, line 5 is zero.

Lines 6 and 7 are real estate taxes and personal property taxes, usually carried over from your federal figures. Lines 8 through 11 handle Oregon’s adjustments. If you claimed an Oregon credit for taxes paid to another state on the same income, reduce the line 5 amount by the tax that generated that credit. You cannot take both a credit and a deduction for the same payment.

One useful difference: the federal SALT cap does not apply here.⁵ Oregon uses its own calculation, primarily by excluding Oregon income tax, instead of a dollar cap.

Interest You Paid (Lines 12–17)

Line 12 is home mortgage interest from your lender’s Form 1098. Line 13 is points paid on a home purchase. Line 14 is investment interest expense, limited to your net investment income. Lines 15 through 17 cover Oregon’s modifications.

Oregon follows the federal mortgage interest rules, including the $750,000 acquisition debt limit for loans originating after December 15, 2017. Have your Form 1098 and any documentation for points or investment interest in front of you before you start.

Gifts to Charity (Lines 18–21)

Cash and check gifts go on line 18; non-cash gifts go on line 19. Federal substantiation rules apply: for any single donation of $250 or more, you need a written acknowledgment from the charity before you file.⁶ Non-cash gifts over $500 require Form 8283.

Oregon adds two wrinkles. If a charity spends less than 30 percent of its annual expenses on program services, Oregon treats it as a disqualified charity and you must add back those donations on Schedule OR-ASC.³ The Oregon Department of Justice posts a list of charities that meet the threshold at doj.state.or.us/charitable-activities. Separately, if you gave to the Oregon Production Investment Fund, University Venture Development Fund, or Oregon IDA Initiative Fund and are also claiming an Oregon credit for the gift, add back the deducted amount so you aren’t getting both a credit and a deduction for the same contribution.

Other Miscellaneous Deductions (Line 22)

Line 22 is for deductions that don’t fit above: federal estate tax attributable to income in respect of a decedent, gambling losses up to the amount of gambling winnings, and certain unrecovered pension investments. Oregon does not allow the old miscellaneous deductions subject to the 2 percent AGI floor, such as unreimbursed employee business expenses or tax preparation fees. Those remain suspended.³

If part of your gambling winnings came from tax-exempt Oregon Lottery prizes, add back the portion of gambling losses that exceeds your Oregon-taxable winnings on Schedule OR-ASC.²

Totaling Line 23 and Transferring to Form OR-40

Add the section subtotals and enter the result on line 23. That is your Oregon itemized deduction, and it goes on line 16 of Form OR-40.⁷ If line 23 comes in below your standard deduction, skip the schedule, put zero on line 16, and take the standard deduction on line 17.

Before you file, check that no Oregon income tax slipped into the taxes-paid section. That is the most common error unique to this form. Also confirm any Oregon add-backs (disqualified charities, duplicate credits, claim-of-right repayments) are reported on Schedule OR-ASC. The Department of Revenue cross-references the two schedules.

How to File Schedule OR-A

Schedule OR-A has to be attached to Form OR-40. You have three ways to submit:

Direct File Oregon. The Department of Revenue’s free, interview-based software handles Schedule OR-A for most full-year residents and bundles it with the OR-40.⁸
Commercial e-file software. TurboTax, H&R Block, and FreeTaxUSA include Schedule OR-A inside their Oregon return modules and transmit it with the OR-40.
Paper. Print Schedule OR-A and attach it behind Form OR-40, then mail to the address matching your return.

For paper returns without a 2-D barcode:

Refund or no tax due: Oregon Department of Revenue, PO Box 14700, Salem OR 97309-0930
Tax due: Oregon Department of Revenue, PO Box 14555, Salem OR 97309-0940

If your software printed a 2-D barcode on page one, use PO Box 14710, Salem OR 97309-0460 for refund returns, or PO Box 14720, Salem OR 97309-0463 for tax-due returns.⁷

Electronic filers with direct deposit typically see refunds within two weeks starting in mid-February. Paper refunds generally don’t begin going out until April.⁹

1
Oregon Secretary of State. Oregon Administrative Rule 150-316-0555 – Modification of Federal Taxable Income: Itemized vs. Standard Deduction
2
Oregon Department of Revenue. 2025 Publication OR-17 Oregon Individual Income Tax Guide
3
Oregon Department of Revenue. 2025 Schedule OR-A Instructions
4
Oregon State Legislature. Oregon Code 316.693 – Subtraction for Medical Expenses of Elderly Individuals
5
Internal Revenue Service. Topic No. 503, Deductible Taxes
6
Internal Revenue Service. Charitable Organizations Substantiation and Disclosure Requirements
7
Oregon Department of Revenue. 2025 Form OR-40 Oregon Individual Income Tax Return for Full-year Residents
8
Oregon Department of Revenue. Direct File Oregon
9
Oregon Department of Revenue. Paper Return Processing Delays in 2026