Now go to the worksheet on Page 13 of the Form OR-40 instructions and fill it out according to your hypotheticals.

Although most items of income and deduction are calculated on the cash basis, Oregon uses accrual basis for the federal tax deduction. Fill out the worksheet for a single person with $100,000 income who owes $1,000 in federal tax and has paid nothing by December 31. The deduction is still $1,000, right? EIP’s have nothing to do with it.

What happens in 2020, stays in 2020. The recovery rebate credit was enacted in 2020. If some of it is used on the 2020 return, it reduces the deduction on the 2020 return. If some of it accrued in 2021, wait till next year and there will be a place to make that adjustment.

Intuit programmers have enough to do for the rest of us, without falling down this rabbit hole.