Tuition and fees [ORS 316.716(3)] [Subtraction code 308]
As of the date this publication was printed, the federal deduction of up to $4,000 in higher education tuition and fees hadn't been extended for tax years after 2017. If Congress doesn't extend the deduction for 2018, the Oregon subtraction won't be available.
You may qualify to claim either of the following on your federal return:
• A deduction of up to $4,000 for qualified tuition and fees paid; or
• The American Opportunity credit or the Lifetime Learning credit.
If you claim a federal credit, you must reduce the deduction related to that student’s expenses to $-0-.
Deduction. If you qualify for and claim the federal deduction of up to $4,000 for qualified tuition and fees, don’t claim a subtraction on your Oregon return.
Your federal deduction flows through to your Oregon return via your federal adjusted gross income.
Credit. Some, but not all, of the expenses that qualify for a federal credit may also qualify for the federal deduction. If you claimed a credit for education expenses, and those expenses would have qualified for the federal deduction, you may be able to claim an Oregon subtraction for the amount you could have claimed as a deduction. However, you can’t claim the subtraction if:
• Your filing status is married filing separately;
• You can be claimed as a dependent by another person on their return, even if that person doesn’t claim you; or
• Your federal modified adjusted gross income (MAGI) exceeds the limitations for the federal tuition and fees deduction as stated on federal Form 8917.