Instructions For Form 40n - Oregon Individual Income Tax Return For Nonresidents (Page 2 of 11) in pdf

Disabled child. You may have an additional

Part-year residents. Oregon taxes your income from all

exemption for your dependent child with a

sources earned or received while you were an Oregon

disability. To qualify, your child must meet all of the

resident. Oregon also taxes your income from Oregon

following:

sources while you were a nonresident.

• Qualify as your dependent.

Income

• Be age 17 or younger.

• Be in school in Oregon.

Wages, salaries, and other pay for work.

• Be eligible for “early intervention services” or diag-

nosed with a disability for special education purposes.

Federal column. Fill in the same amount you reported

Learning disabilities alone don’t qualify for this

on your federal return.

exemption.

• Your child must have a health-related disability requir-

Oregon column. Nonresidents—fill in the amount

ing special education as defined by the Oregon Depart-

earned while working in Oregon. If that amount differs

ment of Education, such as autism, hearing, visual or

from the Oregon wages on your W-2 form, you must

orthopedic impairment, trainable mental retardation,

attach an explanation from your employer to the back

serious emotional disturbance, traumatic brain injury,

of your return. If your Oregon wages are not stated sepa-

or multiple disabilities.

rately on your W-2, compute your Oregon source income

• Your child must have been diagnosed as of Decem-

using the following formula:

ber 31, 1998, through the child’s local school district

Days actually worked in Oregon

Total

Oregon

by a qualified examiner authorized by the Oregon

wages

Days actually worked everywhere

Department of Education.

Do not include holidays, vacation days, and sick days

Keep a copy of the child’s statement of eligibility and

as days actually worked. Do include sick pay, holiday

cover sheet of your child’s Individualized Education Pro-

pay, and vacation pay in total wages. See the example

gram (IEP) or Individualized Family Service Plan (IFSP)

on page 5.

with your permanent health records.

Full-year and part-year residents—fill in amounts you

Write in your child’s name on the “Disabled children

earned while an Oregon resident and any amounts you

only” line. Also, be sure to include the child as a depen-

earned working in Oregon while you were a nonresident.

dent in the total for line 6c.

Exceptions:

Age 65 or older, or blind. Check the boxes on

• See “Interstate transportation wages,” page 5, to see if

line 7 if you or your spouse were age 65 or older,

you qualify to exclude this income.

or were blind on December 31, 1998. Check the same

• Nonresident federal employees who work on either

boxes you checked on the back of your federal return.

Bonneville, The Dalles, John Day, or McNary dams

You are entitled to a larger standard deduction. If you or

should exclude this income from the Oregon column.

your spouse are blind, you may also qualify for an addi-

Write the name of the dam you work on at the top

tional exemption credit. See lines 6a and 6b on page 11.

left corner of the return. We prefer you use blue ink.

Line instructions

Taxable interest and dividend income.

The following instructions are for lines not fully

Federal column. Fill in the same amount you reported

explained on the form.

on your federal return.

Form 40N has two columns for figures.

Oregon column. Nonresidents — fill in only interest

income from an Oregon business you own. Fill in only

The first column on Form 40N is labeled “Federal col-

the dividends passed through to you from an S cor-

umn.” In this column, lines 8 through 28, fill in the same

poration or partnership doing business in Oregon.

amounts you reported on your federal return. On lines

These are dividends your S corporation or partnership

31 through 38, fill in the additions and subtractions as

received on the stock of another corporation.

they apply to your total federal income.

Full-year and part-year residents:

The second column on Form 40N is labeled “Oregon

column.” This column is where you list the amounts that

9a. Figure the total interest you received while you

apply to Oregon.

were an Oregon resident that is included on your

federal return. Add to that your share of interest

Nonresidents. Oregon taxes only your income from

income received while you were a nonresident on

Oregon sources. See “What does income from Oregon

funds used for business activity in Oregon.

sources include?” on page 4.

9b. Figure the total dividends you received while you were

Full-year residents. Oregon taxes your income from all

an Oregon resident that are included on your federal

sources.

12/Form 40N line instructions

Instructions For Form 40n - Oregon Individual Income Tax Return For Nonresidents Page 2

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