OAR 150-316-0179: Student Loan Interest Deduction — for Part-Year and Nonresidents

Individuals who are allowed a deduction for student loan interest for federal purposes shall be allowed a deduction for Oregon purposes. The allowable Oregon deduction is limited to a percentage of the federal deduction (not to exceed 100 percent). The qualifying interest paid while a nonresident of Oregon must be prorated based on the ratio of total Oregon source income while a nonresident to total income while a nonresident, determined without deduction for student loan interest. The qualifying interest paid while a resident is deductible in full. See the example for the alimony adjustment under OAR150-316-0195. The total Oregon deduction cannot exceed the amount allowed under federal law.