Oregon’s Qualified Business Income Reduced Tax Rate can only be claimed on an original return. An original return now includes amended returns filed within the extended time period.
What is Considered an Original Return?
Now, if a taxpayer has an extension and the amended return changing the qualified business income reduced tax rate election is filed by the October 15, the election is considered filed on the original return. Previously, amended returns filed before April 15 changing the election were considered original returns.
Can Other Irrevocable Elections be Changed?
Only the Qualified Business Income Reduced Tax Rate election is treated as an original election. Changes to other irrevocable elections must be made on an amended return filed by April 15 regardless of whether the taxpayer had an extension or not. Examples of other irrevocable elections include:
– the surplus refund (kicker) credit donation; or
– changes to the federal tax subtraction.
Revenews, Oregon Department of Revenue, January 8, 2019