Form 40p Instructions - Oregon Department Of Revenue (Page 5 of 10) in pdf

• Oregon tax refund included in federal income. This

return. If you itemize for Oregon only, fill out a sepa-

subtraction is for Oregon income tax refunds only.

rate Schedule A. Use your federal adjusted gross income

to figure the Schedule A limitations. Keep Schedule A with

Federal column. Fill in your Oregon income tax

your tax records.

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

eral column. Label the subtraction “Oregon refund.”

Note: Married people filing separate returns must item-

ize deductions if their spouse itemizes. Are you filing

Oregon column. Fill in your Oregon income tax refund

separate returns for Oregon only? If so, see Form 40N

only if you included it on line 10 of the Oregon column.

instructions, page 11.

• Railroad retirement benefits.

State income tax claimed as an itemized

Federal column. Fill in your Tier 2, supplemental,

deduction. Fill in the amount of Oregon income

windfall, and dual-vested Railroad retirement benefits

tax you claimed as an itemized deduction on federal Sched-

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

ule A, line 5. Also, if you claim a credit for income tax paid

road unemployment benefits included on line 19.

to another state, include the other state’s tax after credits

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

or the other state’s tax claimed as an itemized deduction,

does not tax Railroad retirement or Railroad unemploy-

whichever is less. See instructions for line 59, page 30.

ment benefits.

Did you limit itemized deductions on your federal return

• Oregon Lottery. Oregon does not tax Oregon Lottery

because your adjusted gross income exceeded $124,500

and Powerball winnings of $600 or less per winning

($62,250 if married filing separately)? If so, you may need

ticket, or winnings on tickets purchased before Janu-

to complete a worksheet to figure how much Oregon

ary 1, 1998.

income tax to subtract from itemized deductions. See

Federal column and Oregon column. Fill in Oregon

page 36 to order the information circular, “Limit on Item-

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

ized Deductions.”

the winning ticket was purchased on or after January

1, 1998, while an Oregon resident. Add to that any

Standard deduction. Generally, your standard

amount of Oregon Lottery winnings from tickets pur-

deduction is based on your filing status, as follows:

chased before January 1, 1998 and any amounts re-

Single

$1,800

ceived while you were a nonresident.

Married filing jointly

3,000

You may also need to reduce your gambling losses

Married filing separately

1,500

claimed on Schedule A. See instructions for line 47. If

Head of household

2,640

you need help, see page 36.

Qualifying widow(er)

3,000

There are also subtractions which apply to only a few

Caution: If you can be claimed as a dependent on another

people. They are listed on page 17 of the 40N instruc-

person’s return, your standard deduction is limited to the

tions. Make the subtraction in both the federal and

greater of:

Oregon columns if the related income was included in

1. Your earned income plus $250, but no more than the

both columns.

maximum allowed for your filing status as shown

above, or

Oregon percentage. Divide the amount on

2. $700.

line 39b by the amount on line 39a. Carry your

The limit applies even if you can be, but are not, claimed

decimal to three places without rounding to figure your

as a dependent on another person’s return.

percentage. Write the percentage on line 40. Don’t fill

in more than 100 percent or less than -0-.

Also: You are allowed an additional deduction if you

Oregon

or your spouse are age 65 or older, or blind. The addi-

percentage

tional amount is based on your filing status:

Example Line 39b

Line 39a

Line 40

Single or head of household—$1,200

÷ $30,000

$8,000

.266 (26.6%)

All others—$1,000

(1,000)

15,000

= -0- (0%)

1998 federal tax liability. Caution: Carefully

20,000

15,000

= 1.000 (100.0%)

follow the instructions below. Don’t confuse your

federal tax liability from your federal return with the fed-

Deductions and modifications

eral tax withheld on your W-2. They aren’t the same.

You may claim either net itemized deductions or

You may deduct your total federal income tax liability

Oregon’s standard deduction, whichever is larger.

after credits, up to $3,000. Don’t fill in less than -0- or

more than $3,000 ($1,500 if married filing separately).

Itemized deductions. Generally, you may claim

Fill in your federal tax liability from:

your total itemized deductions shown on federal

Schedule A, line 28. You may itemize for Oregon even if

• Form 1040, line 49, or

you took the federal standard deduction on your federal

• Form 1040A, line 32, or

26/Deductions

Form 40p Instructions - Oregon Department Of Revenue Page 5

Related Articles

Related forms

Related Categories