How to apply for Oregon income tax breaks for older adults (retirement income credit, age 65+ deduction, medical subtraction)

Who it's for

Oregon does not tax Social Security or Railroad Retirement benefits. If you are 65 or older (or blind), you can add $1,200 to your Oregon standard deduction ($1,000 per spouse if married filing jointly). If you or your spouse turned 66 by the end of the year, the special Oregon medical subtraction lets you subtract up to $1,800 of medical and dental expenses per qualifying person, depending on income. If you are 62 or older with taxable retirement income, you may get the retirement income credit if your household income is less than $22,500 ($45,000 if married filing jointly) and your Social Security is less than $7,500 ($15,000 jointly). Claim these on your Oregon income tax return.

What you'll need

• Oregon income tax return (Form OR-40)
• Forms 1099-R and SSA-1099 (retirement and Social Security income)
• Records of medical and dental expenses (for the medical subtraction)

Where to apply

What to say when you call

"Hello, I'm calling to ask about Oregon income tax breaks for older adults (retirement income credit, age 65+ deduction, medical subtraction). I'd like to know whether I may qualify, what documents I need, and whether I can apply online, by mail, by phone, or in person. I understand I may need oregon income tax return (Form OR-40), forms 1099-R and SSA-1099 (retirement and Social Security income), records of medical and dental expenses (for the medical subtraction) — is anything else required? What is the best next step?"

Tip: have a pen ready, ask for the person's name, and write down any case or reference number they give you.

Step by step

1. Gather your Oregon income tax return (Form OR-40), Forms 1099-R and SSA-1099, and records of medical and dental expenses.
2. Check which tax break fits your situation. The extra deduction starts at age 65. The medical subtraction starts at 66 and has income rules. The retirement income credit starts at 62 and has its own income rules.
3. Complete your Oregon income tax return and claim any tax break you qualify for on that return.
4. Apply online or call 1-800-356-4222 if you need help with how to file or how to claim these items.
5. Review your return carefully. Make sure your income forms and any medical and dental expense records match what you report.
6. Submit your Oregon income tax return to claim the tax break or breaks.

What to expect: After you submit your Oregon income tax return, the Oregon Department of Revenue reviews it as part of normal tax filing. These tax breaks only help if you owe Oregon income tax. Processing times vary, so ask the agency if you want an estimate. You must claim these items each year when you file your Oregon return. Amounts and rules can change, so confirm the current year rules before filing.

Renewals

annual