Oregon Children With A Disability: Tax Exemption and Filing Guidance
For taxpayers in Oregon who have a child with a disability, there are specific tax provisions available to provide relief. The Oregon Department of Revenue allows for an exemption credit for qualifying children with disabilities, which can reduce your overall tax liability.
Eligibility for the Disability Exemption
- Each qualifying child must have an Individualized Education Program (IEP) or an Individualized Family Service Plan (IFSP).
- Taxpayers must retain the eligibility statement and cover sheet from the child’s IEP or IFSP with their tax records.
- The exemption is applied by checking the “Child with a disability” box on Form OR-40 (Individual Income Tax Return) or Form OR-40-NP (Part-Year Resident and Non-resident Income Tax Return), and on Schedule OR-ADD-DEP if applicable.
How to Claim the Exemption
- Complete Form OR-40 or OR-40-NP as applicable.
- Check the “Child with a disability” exemption box for each qualifying child listed on the return.
- Ensure you have documentation (IEP or IFSP) available for audit purposes.
Important Notes
- The exemption is available for children who meet the criteria under Oregon’s disability guidelines.
- For divorced or separated parents, if the dependent exemption was released to the non-custodial parent, the child does not qualify for this credit unless specific conditions are met.
- Publication OR-17 provides additional guidance on Oregon’s tax laws and exemptions, including those for children with disabilities.
Source:
Form OR-40 - Individual Income Tax Return
Publication OR-17 - Individual Income Tax Guide
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.