(1) The department may, as a convenience to
taxpayers, issue separate refunds when either spouse submits a signed request.
To issue separate refunds when a joint refund check has already been issued,
the check must be returned uncashed. If either spouse has an amount owing to
the state of Oregon, any refund due that person will be applied to the
liability and the balance, if any, issued in a separate refund check.
(2) For purposes of this rule, the separate
adjusted gross income (AGI) of each spouse is equal to each spouse's share of
Oregon adjusted gross income.
Example 1 : Ann
and her husband Ian, both Idaho residents, filed a joint Oregon return claiming
a $600. He owes a $500 debt to an Oregon city for unpaid parking tickets so the
department withheld part of the joint $600 refund to pay the $500 debt and
issued a $100 refund for the difference. Before they cashed the $100 refund,
Ann sent it back requesting her share of the amount paid to the city in Oregon
because she did not owe the debt. Ian reported $25,000 of wages of which he
earned $10,000 in Oregon. Ann reported $15,000 of wages of which $5,000 she
earned in Oregon. They had no other income to report. The department will
apportion her refund based on her share of Oregon AGI as follows:
Federal column Oregon Column
Ian's wages $25,000 $10,000
Ann's wages $15,000 $5,000
Federal AGI $40,000 $15,000 (Oregon AGI)
$5,000 รท $15,000 = 1/3
$600 x 1/3 = $200
The department will apportion the $600 refund and issue a $200
refund to Ann. Ian's portion of the refund was $400 thus he still owes the City
of Portland $100.
(3) For purposes of this rule, items of
income and deduction, separate adjusted gross income, and any refund claimed
are determined without regard to community property law.
Example 2 : Ethan and his wife Ava, both
Washington residents, filed a joint Oregon return claiming a $1,500 refund. She
owes a $1,200 debt to an Oregon university so the department withheld part of
the joint refund and sent a $300 check for the difference. Before they cashed
the $300 refund, Ethan sent it back requesting his share of the joint refund
because he did not owe the debt and he claimed he owned half of the refund
because he lives in a community property state. Ethan reported $50,000 of wages
all of which he earned in Washington. Ava reported $25,000 of wages all of
which she earned in Oregon. They had no other income to report. The department
will apportion his refund based on his share of Oregon AGI without regard to
community property law as follows:
Federal column Oregon Column
Ethan's wages $50,000 $0
Ava's wages $25,000 $25,000
Federal AGI $75,000 $25,000 (Oregon AGI)
Because Ethan does not have any share of the Oregon AGI and
community property law is disregarded for this purpose, the entire refund
belongs to Ava and the department will not apportion any of it to Ethan.
(4) If the refund is
being held for application against an amount owed to an agency of the state of
Oregon, the request for separate refunds must be mailed to the Department of
Revenue within 30 days of the date of the Notice of Proposed Adjustment and/or
Distribution. Separate refunds will not be made if the request is not received
timely.
(5) Pursuant to ORS
18.665(2), the
department cannot issue separate refunds when a garnishment or levy has been
served on the department for one or both spouses.
Notes
Or. Admin. R.
150-314-0254
1-69; 11-71;
12-19-75; 1-1-77, Renumbered from 150-316.192(2)-(A); 12-31-85; RD 13-1987, f.
12-18-87, cert. ef. 12-31-87; RD 7-1991, f. 12-30-91, cert. ef. 12-31-91; RD
9-1992, f. 12-29-92, cert. ef. 12-31-92; REV 3-2002, f. 6-26-02, cert. ef.
6-30-02; REV 11-2004, f. 12-29-04, cert. ef. 12-31-04; Renumbered from
150-314.415(6), REV 3-2005, f. 12-30-05, cert. ef. 1-1-06; REV 11-2007, f.
12-28-07, cert. ef. 1-1-08; REV 4-2012, f. 7-20-12, cert. ef. 8-1-12; REV
6-2013, f. & cert. ef. 12-26-13; Renumbered from 150-314.415(7),
REV
31-2016, f. 8-12-16, cert. ef.
9/1/2016
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
314.415
