Instructions For Form 40n - Oregon Individual Income Tax Return For Nonresidents (Page 6 of 11) in pdf

• Military active duty pay. You may qualify for three

Series EE and HH bonds, and Treasury bills and notes.

different subtractions.

You may also subtract interest and dividends paid to

you by organizations that invest in U.S. government

1. You can subtract active duty pay earned outside of

securities. Check the information on your Form 1099.

Oregon from January 1 through the date the Presi-

The payer may have given the percentage of interest

dent sets as the end of combat activities in the Per-

and dividends from U.S. government securities. U.S.

sian Gulf. The date was not set when these

government interest must be reduced by any interest

instructions were published.

expense relating to U.S. government obligations you

Federal column. Fill in the amount of active duty

deducted on your federal Schedule A.

pay earned outside of Oregon that is included in

Oregon column. If you included interest and dividends

federal income, line 8, federal column. Write “Com-

from the U.S. government on line 9 of the Oregon col-

bat zone” in the center at the top of your return.

umn, fill in this amount of U.S. government interest on

We prefer you use blue ink.

line 38.

Oregon column. Nonresidents—don’t fill in any

Note: When you sell or dispose of a U.S. government

amount. Full-year and part-year residents—fill in

obligation, you must include any gain or loss in income.

your U.S. military active duty pay earned outside of

Oregon which is included in line 8, Oregon column.

• Local government bond interest.

2. If you were an Oregon resident who entered the

Federal column. The U.S. government taxes certain

military for the first time in 1998 or left the military

types of local government bond interest (e.g., private

during 1998, you may subtract active duty pay

activity bonds). If you included income from Oregon

earned outside of Oregon.

bonds on your federal return, deduct it on this line.

Label it “Local government bond interest.”

Federal column. Fill in the amount of active duty

pay earned outside of Oregon that is included in

Oregon column. Fill in Oregon local government

federal income, line 8.

bond interest if you included it in Oregon income on

line 9.

Oregon column. Nonresidents—don’t fill in any

amount. Full-year and part-year residents—fill in

• Oregon tax refund included in federal income.

your U.S. military active duty pay earned outside of

This subtraction is for Oregon income tax refunds

Oregon that is included in line 8, Oregon column.

only.

3. Whether or not you are eligible for the other mili-

Federal column. Fill in your Oregon income tax

tary subtractions, you may still subtract up to $3,000

refund only if you included it on line 10 of the fed-

of active duty pay.

eral column. Label the subtraction “Oregon refund.”

Federal column. Fill in your U.S. military active duty

Oregon column. Fill in your Oregon income tax

pay included in your federal income. The subtraction

refund only if you included it on line 10 of the Oregon

for each spouse receiving active duty pay is limited

column.

to $3,000. Reserve summer camp is active duty. How-

• Railroad retirement benefits.

ever, drills and weekend meetings of reserve units

aren’t active duty. If you are in the National Guard

Federal column. Fill in your Tier 2, supplemental,

or reserves and your W-2 doesn’t show a separate

windfall, and dual-vested Railroad retirement benefits

amount for active duty pay, contact your paymaster.

included on line 16 of the federal column. Fill in Rail-

road unemployment benefits included on line 19.

Oregon column. Nonresidents—don’t fill in any

Oregon column. Don’t fill in any amount. Oregon

amount. Drill pay and weekend meeting pay for

does not tax Railroad retirement benefits or Railroad

nonresident members of the Oregon National Guard

unemployment benefits.

or reserves may not be subtracted. Report that pay

in the Oregon column, line 8. Full-year and part-

• Oregon Lottery. Oregon does not tax Oregon Lottery

year residents—fill in your U.S. military active duty

and Powerball winnings of $600 or less per winning

pay that is included in line 8, Oregon column.

ticket, or winnings on tickets purchased before Janu-

ary 1, 1998.

Note: Your total active duty pay subtractions cannot

exceed your total active duty pay income.

Federal column and Oregon column. Nonresi-

dents—fill in all Oregon Lottery winnings included on

• Interest and dividends from the U.S. government.

line 19. Full-year and part-year residents—fill in Oregon

Federal column. Fill in interest and dividends from the

Lottery winnings included on line 19 of $600 or less if

U.S. government you included on your federal return.

the winning ticket was purchased on or after January

Include U.S. government interest you got through part-

1, 1998 while an Oregon resident. Add to that all win-

nerships or grantor trusts. Examples: interest from U.S.

nings from tickets purchased before January 1, 1998.

16/Subtractions from income

Instructions For Form 40n - Oregon Individual Income Tax Return For Nonresidents Page 6

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