OR Special Medical Subtraction - Code 351
The Special Oregon Medical Subtraction (Code 351) allows taxpayers to reduce their Oregon taxable income by certain qualifying medical and dental expenses. This subtraction is available only if you itemize deductions on your Oregon return (Schedule OR-A) and meet specific income and expense thresholds.
How to Calculate the Special Oregon Medical Subtraction
- Line 1: Enter each qualifying taxpayer’s medical and dental expenses claimed as itemized deductions (from Schedule OR-A, line 1). Separate amounts for you and your spouse in columns (A) and (B).
- Line 2: Enter the federal adjusted gross income (AGI) from Form OR-40, line 7, or equivalent form.
- Line 3: Divide Line 1 by Line 2. Round to three decimal places.
- Line 4: Enter the smaller of Line 2 or Schedule OR-A, line 3 (the federal medical expense deduction).
- Line 5: Multiply Line 3 by Line 4. Round to the nearest dollar.
- Line 6: Enter the maximum allowable medical subtraction for your filing status and federal AGI from Table 1. Do not enter more than $1,800 per column.
- Line 7: Enter the smaller of Line 5 or Line 6.
- Line 8: Combine amounts from Line 7, columns (A) and (B). This is your special Oregon medical subtraction.
Maximum Allowable Subtraction by Filing Status and Income
Based on Table 11 in Publication OR-17, the maximum allowable subtraction per qualifying taxpayer is:
- Married filing jointly, Head of household, or Qualifying surviving spouse:
- AGI less than $50,000: $1,800
- AGI $50,000 to $100,000: $1,400
- AGI $100,001 to $200,000: $1,000
- AGI $200,001 or more: $0
Note: If you claim the standard deduction on your Oregon return, you cannot use this subtraction. Skip lines 2–4 and enter the amount from Line 1 on Line 5, then proceed to Line 6.
Where to Report
The special Oregon medical subtraction is reported on Schedule OR-ASC (Section B) or on Schedule OR-ASC-NP (Section C), depending on your filing status and whether you are using the non-resident or resident form.
Source:
Publication OR-17
Schedule OR-ASC Instructions
Form OR-40
Disclaimer: Always verify details with the official forms and instructions from the Oregon Department of Revenue. OLT (Online Taxes) provides guidance based on retrieved information but does not guarantee accuracy for individual tax situations.